Venezuela has launched a broad restructuring of its foreign debt, including obligations tied to state oil company PDVSA, the Ministry of Economy and Finance announced on Wednesday.

The government said total external liabilities amount to around 170 billion dollars.

Venezuela has been in default since 2017. According to estimates from the International Monetary Fund (IMF), the country’s annual economic output currently stands at about 110 billion dollars.

“Our capacity and willingness to meet our obligations have been affected by financial sanctions,” Venezuela’s Economy and Finance Ministry said, referring to measures imposed by the United States.

Washington has gradually eased sanctions since the U.S. military captured the former Venezuelan leader Nicolás Maduro in January.

The U.S. Treasury Department, only days ago, authorised Caracas to hire legal and financial advisers to support the restructuring effort.

Debt restructurings are typically complex and often involve lengthy negotiations with creditors.

U.S. President Donald Trump’s administration has sought greater influence over Venezuela’s vast oil reserves and now exerts significant sway over the country’s oil industry and politics.

(dpa/NAN)