Wednesday, June 7, 2023

Venezuelan creditors ask opponents to support suspension of bond maturities

CARACAS, May 15 (Reuters) – A committee of Venezuelan creditors on Monday called on the opposition, which is recognized by the United States as the country’s legitimate authority, to suspend a proposal by President Nicolas Maduro’s government to suspend maturity. asked to support. Tenure of Venezuelan debt bonds.

In March, Republic and the PDVSA proposed a suspension of bond prescriptions for five years (2028) or until the United States lifts sanctions that “prevent restructuring” of debt. The opposition has not yet given a verdict on this issue.

The government of President Nicolas Maduro is subject to sanctions from Washington that affect crude oil sales and limit debt negotiations for the United States.

The opposition National Assembly this month received a license from the US Treasury Department that allows it to carry out debt settlement agreements with the government and the PDVSA and nominate individuals or entities to lead those negotiations.

“We welcome the decision of the Maduro government (…). However, the agreement (…) faces legal uncertainty in the United States, leaving the position of creditors open and a permanent solution to the debt problem.” The prospects for a solution are not clear.” The committee of creditors said in a statement.

The committee, which brings together creditors with more than $10,000 million in bonds, believes a settlement approved by the opposition parliament “could prevent legal complications and economic mess” as additional premature litigation would be avoided.

Venezuela and PDVSA, which have more than $60 billion in debt, stopped paying bondholders in late 2017.

Venezuelan bonds were issued under New York state law, which is why they have a statute of limitations that states that interest on these titles ceases to be legally enforceable six years after nonpayment.

In October 2023, Venezuela will have six years without canceling bondholders, so there are risks of lawsuits from creditors before that period.

Nation World News Desk
Nation World News Desk
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