{"id":25139,"date":"2017-09-01T18:49:26","date_gmt":"2017-09-01T23:49:26","guid":{"rendered":"http:\/\/olduvai.ca\/?p=25139"},"modified":"2017-09-01T18:49:26","modified_gmt":"2017-09-01T23:49:26","slug":"venezuela-headed-for-messiest-debt-restructuring-in-history-thanks-to-us-sanctions","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=25139","title":{"rendered":"Venezuela Headed For “Messiest Debt-Restructuring In History” Thanks To US Sanctions"},"content":{"rendered":"

Venezuela Headed For “Messiest Debt-Restructuring In History” Thanks To US Sanctions<\/a><\/h3>\n
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After being effectively shut out from global financial markets \u2013 a situation that was made more precarious by US sanctions prohibiting purchases of Venezuelan debt (unless you\u2019re buying them off Goldman Sachs, should the bank\u2019s asset-management arm desire to liquidate its $3 billion \u201chunger bond\u201d position) \u2013 Venezuela is drawing ever-nearer to what the Financial Times <\/a>describes as potentially the \u201cmessiest debt restructuring in history.\u201d<\/strong><\/p>\n

So far, Venezuela has managed to forestall a default by stripping assets from its state-owned oil company, Petroleos de Venezuela, commonly referred to as PVDSA, and shaking down local institutions of spare dollars \u2013 not to mention the explicit financial support of China and Russia. <\/strong>Recently, Rosneft, the largest Russian oil company, helped support its troubled ally, which enjoys the largest crude reserves in the world, by offering billions of dollars in advance payments for future crude supplies. Thanks to a deal brokered by deceased former President Hugo Chavez, Venezuela has for years been Rosneft\u2019s largest foreign supplier of crude. Last year, the oil giant accepted a 49.9% stake in PVDSA\u2019s US-based subsidiary, Citgo, as collateral for a $1.5 billion loan.<\/p>\n

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Venezuelan President Nicolas Maduro<\/em><\/p>\n

However, thanks to the US sanctions, which prohibit purchases of newly issued debt and existing bonds that have so far not been sold outside of Caracas, the country will once again need to innovate or risk sliding into bankruptcy. <\/strong>Making matters all the more urgent, the country recently suffered a loss in US courts after a judge ruled that Canadian miner Crystallex can seize Venezuelan money held in a custody account at Bank of New York Mellon to cover a $1.4 billion judgment awarded by a World Bank tribunal.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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Venezuela Headed For “Messiest Debt-Restructuring In History” Thanks To US Sanctions After being effectively shut out from global financial markets \u2013 a situation that was made more precarious by US sanctions prohibiting purchases of Venezuelan debt (unless you\u2019re buying them off Goldman Sachs, should the bank\u2019s asset-management arm desire to liquidate its $3 billion \u201chunger […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,3107,8262,4754,376,10695,15836,2927,851],"class_list":["post-25139","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-debt-restructuring","tag-financial-times","tag-global-financial-markets","tag-goldman-sachs","tag-petroleos-de-venezuela","tag-pvdsa","tag-us-sanctions","tag-venezuela"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25139"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25139\/revisions"}],"predecessor-version":[{"id":25140,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25139\/revisions\/25140"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}