27-03-03 Venezuelan Brady bonds when down 3 points after Venezuela’s President Hugo Chavez said the country needs to restructure it $ 23 bn foreign debt.
"Venezuela needs to restructure its external debt, which is very heavy," Chavez said.

Venezuela’s government is fighting a severe cash shortage after the two month nation-wide disobedience general strike to demand Chavez's resignation or early elections, the strike virtually shut Venezuela's oil industry income which contributes about half of public revenue. Venezuela lost $ 6 bn during two-month strike according to government estimates.
Venezuela's foreign debt amounts to 37 % of its $ 63 bn economy. The country faces payments of $ 5 bn this year to service its foreign debt, Chavez said. Oil production is currently at 2.4 mm bpd-, from 3.2 mm bpd in November, according to analysts. The government estimates oil production at more than 3 mm bpd.

Chavez said nothing about how a debt restructuring would be handled. Foreign debt service is at $ 5bn for this year and this year's government financing needs are almost 10 % of Gross Domestic Product, or about $ 6.4 bn, according to analysts.
Analysts estimate Venezuela's economy could shrink up to 40 % in the first half of the year. Last year it contracted almost 9 %.