US allows Venezuela to hire advisors to prepare for $60 billion debt negotiations
Kyiv • UNN
The US has allowed Venezuela to hire advisors to prepare for the restructuring of $60 billion in debt. Direct payments and negotiations with creditors remain prohibited for now.
The US government has issued a license allowing Venezuela to hire financial and legal advisors to prepare for potential negotiations on restructuring its defaulted debt. This was reported by Bloomberg, according to UNN.
Details
According to an update from the US Treasury Department, Caracas has received permission to engage consultants to develop "debt restructuring options, proposals, and related materials."
The document covers the government of Venezuela and the state-owned oil company PDVSA.
At the same time, the license does not permit direct debt restructuring, negotiations with creditors, or payments related to debt transactions, gold, or digital assets.
Markets reacted with an increase in the value of Venezuelan bonds
Following the news, Venezuelan bond prices rose sharply. In particular, notes maturing in 2027 increased by more than two cents to about 55 cents on the dollar, the highest level since 2016.
"This is a positive step. It provides more certainty regarding the timeframe, given that the process is now beginning. I think this means that 2027 is the base case for restructuring,"
Debt in default since 2017, investors await negotiations
Venezuela has been in default since 2017. The total volume of obligations, including government bonds, interest, and other debts, is estimated at approximately $170 billion.
Previously, a creditors' committee, which includes major investment funds, stated its readiness to begin negotiations.
Expectations for the process to intensify have grown following changes in the political situation and signals of a possible rapprochement between Washington and Caracas, particularly in the energy sector.
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