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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La entrada Venezuelan debt renegotiation could restart this year apareció primero en Bitfinance.

The French Government had to adjust its growth forecasts for this year downwards to 1 %, four tenths below the previous target. This will mean an immediate cut in public spending of EUR 10 billion.

The French Minister of Economy and Finance, Bruno Le Maire, announced this budgetary adjustment in an interview with the TV channel TF1, justifying it “out of responsibility” to maintain the target of reducing the government deficit to 4.4 % of Gross Domestic Product (GDP).

Despite the downward correction in growth projections to align with the major prospecting institutions, Le Maire emphasized that the situation remains “positive” and that the political context will be taken into account.

This context is marked by the impact of the war in Ukraine, the conflict in the Middle East, which affects trade flows across the Red Sea, the recession in Germany (France’s main trading partner) and a stronger-than-expected slowdown in activity in China.

Regarding the maintenance of the 4.4 % deficit target, it underlines that it is necessary to “keep our public finances under control”.

In addition, it has decided not to raise taxes, a policy that French President Emmanuel Macron has applied since the beginning of his first term in 2017, and they assure that they will not deviate from that line.

With regard to the cuts, it is expected that the effort will fall on the State Administration, without affecting social security. Of the $10 billion, $5 billion will come from adjustments to the operating expenses of all ministries, depending on their weight in the overall budget.

K. Tovar

Source: Notiamerica

(Reference image source: Scott Graham at Unsplash)

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La entrada France adjusted its growth forecasts for 2024 apareció primero en Bitfinance.