Venezuela only has $10 billion in reserves — the cash that’s intended to keep an economy stable and weather tough times.
What’s worse: most of those reserves aren’t in hard cash. About $7 billion is in gold bars, which doesn’t make it easy to make payments.
And Venezuela has a lot of bills to pay soon. It owes $6 billion in debt payments for the rest of this year. There’s also no sign that the country’s lone source of revenue — oil exports — will be able to pay down those debts.
At the end of the day, Venezuela is running the risk of defaulting on its debt this year, meaning it wouldn’t be able to get more loans to pay for basics like food and medicine, which are in scarce supply. Reads more at CNN.