Public debt threatens democracy in Venezuela

Venezuela's high public debt poses a direct risk to the democratic and institutional stability of the country, according to La Patilla.

Sovereign borrowing without the capacity to pay strangles public finances and reduces the state's room for fiscal maneuver. When financial obligations absorb most of national revenue, investment in infrastructure, basic services and social protection shrinks sharply, eroding governability.

Internationally, sovereign risk assessments reflect this deterioration. According to estimates by Aswath Damodaran (NYU Stern) as of January 1, 2026, Venezuela's country risk premium stood at 26.66%, accompanied by a credit rating of C.

This financial constraint directly affects the daily lives of the population. In this context, improving services and socioeconomic conditions remains among citizens' most urgent expectations, according to data from an AtlasIntel survey cited by the outlet.