Venezuelan debt on index watch by JPMorgan
The JPMorgan Chase & Co bank placed the country's debt securities in a state of surveillance due to various factors, such as the sanctions imposed by the US
This week JPMorgan Chase & Co put the values of Venezuela’s debts in “vigilance” due to the interruption that occurred in the negotiations for the sanctions imposed on the government of Nicolás Maduro.
Through a notice, which was shown by Reuters, the bank said that the monitoring of the indexes will cover the sovereign bonds issued by the Venezuelan oil company Pdvsa, which are part of EMBIG Diversified, EMBIG and EMBI +.
This pause will serve the institution to assess liquidity and the feasibility of future negotiation.
On the other hand, official communications in the secondary debt market with Venezuela will be taken into account.
The different sanctions imposed by the Office of the Treasury for the Control of Foreign Assets (OFAC) have generated difficulties in the negotiation in that market, the liquidity and the formation of prices of sovereign bonds.
Currently, 20 Venezuelan bonds (12 sovereign and eight PDVSA bonds) are in the EMBIG Diversified benchmark with a total weight of 0.97%, compared to 1.19% at the beginning of February.
K. Tovar
Source: Panorama
