Venezuelan debt renegotiation could restart this year
The current political situation in Venezuela has led to a shift in position among a significant group of Venezuelan bondholders, holding approximately $60 billion, who are seeking advice for a historic debt renegotiation
The potential easing of US sanctions against Venezuela is encouraging a group of bondholders with approximately $60 billion in debt to pursue a possible renegotiation.
The current political landscape has opened the door to potential negotiations, according to Bloomberg Linea, for a historic transaction involving $170 billion in debt.
According to recent calculations, Venezuela’s public debt would be equivalent to 193% of its estimated 2025 GDP, according to Oxford Economics. The most recent data from the International Monetary Fund (IMF) places the republic’s total liabilities — domestic and external debt — at $197 billion.
It is known that Venezuela’s Creditors Committee has begun evaluating proposals from several advisors, “including Houlihan Lokey and Ankura Consulting Group LLC,” sources said. The group could make a decision as soon as the next few days, according to one of the sources.
On the other hand, the bondholder group includes Fidelity Management & Research Company LLC, Morgan Stanley Investment Management, and Greylock Capital Management. Prices for government and state oil company bonds have been depressed since 2017. However, interim president Delcy Rodríguez has expressed her willingness to cooperate with US President Donald Trump on a plan to increase oil production and stabilize the economy.
M.Pino
Source: bancaynegocios
(Reference image source: Jakub Żerdzicki on Unsplash)
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