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GatoGordo

(2,412 posts)
Thu Jan 24, 2019, 05:01 PM Jan 2019

Economic turnaround seen with regime change in Venezuela

The outlook for change boosts Venezuelan bonds to 2017 highs



translated from Spanish

The sovereign title of 2024 of Venezuela denominated in dollars advanced this Thursday 0.5 cent, after jumping more than 4 cents on Wednesday. Now it is at the highest level since 2017.
January 24, 2019, 11:46

London . The dollar denominations of the Venezuelan government and state oil company PDVSA extended profits on Thursday after US support for opposition leader Juan Guaidó fueled investor expectations of a turnaround in the country.

Guaidó declared himself interim president on Wednesday, winning the support of Washington and parts of Latin America, which caused President Nicolás Maduro, in office since 2013, to break relations with the United States.

The Madurno government began to gradually suspend interest payments on about US $ 50,000 million in public debt in 2017, in an effort to save dollars.

The government and state companies owe more than US $ 8,000 million in interest and principal in the midst of the collapse of the country's economy.

Venezuelan sovereign bonds due in 2024 or later have been negotiated at less than half of their face value since the end of 2014.

"For the first time there is a feeling that there is pressure from both outside and inside the country," said David Nietlispach of Pala Asset Management, whose company holds both sovereign and PDVSA titles.

"It's a big step if the Americans do not recognize the government anymore ... Also, apparently we have a candidate who has to be able to unify the opposition," he said.

The sovereign title of 2024 of Venezuela denominated in dollars advanced 0.5 cent, after jumping more than 4 cents on Wednesday. Now it is at the highest level since 2017, when Maduro publicly called for the restructuring of the debt.

The 2035 PDVSA title rose 1.5 cents, reaching the strongest level in nine months.


https://www.americaeconomia.com/economia-mercados/finanzas/titulos-de-venezuela-alcanzan-maxima-desde-2017-por-expectativas-de
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