The Daily Journal. – International financial markets registered a rebound in the valuation of Venezuelan assets this Wednesday after the government of interim president Delcy Rodríguez officially announced its intention to begin a process of renegotiating the country’s external debt.
According to a Bloomberg report, sovereign bonds, which have remained in default territory since 2017, experienced an immediate increase of between 2 and 3 cents on the dollar, reflecting a shift in risk perception among institutional holders.
Earlier in the day, Caracas explained in an official statement that the objective of the “comprehensive and orderly” external public debt restructuring process was to “free the country from the burden of accumulated debt, guaranteeing its future and a rebirth of prosperity, justice, and equality.”
Following the announcement, Republic bonds were traded in a range between 18 and 21 cents on the dollar, a recovery level not seen in years.
Meanwhile, bonds issued by the state-owned oil company Petróleos de Venezuela (PDVSA) followed the same upward trend, trading near 14 to 16 cents on the dollar.
This movement responds to what analysts describe as a preliminary “offer of understanding,” aimed at halting the wave of litigation in New York courts and establishing a clear roadmap for fulfilling obligations totaling approximately $154 billion, including a heavy burden of accrued interest.
With information from Bloomberg.
