The  Daily  Journal.-  The  American  newspaper  The  Wall  Street  Journal  (WSJ)  reported  that  French  banker  Matthieu  Pigasse  will  lead  the  restructuring  process  of  Venezuela’s  external  debt, estimated at around $150 billion  .

 According  to  the  newspaper,  the  Venezuelan  government  hired  the  U.S.  firm  Centerview  Partners ,  where  Pigasse  is  one  of  the  leading  figures,  to  conduct  financial  negotiations  aimed  at  reintegrating  Venezuela  into  the  international  economic  system  after  years  of  isolation  and  default.

 The  publication  stated  that  Wall  Street  had  anticipated  this  scenario  since  the  military  operation  carried  out  by  the  administration  of  Donald  Trump  in  January,  which  allegedly  resulted  in  the  capture  of  Nicolás  Maduro  and  his  transfer  to  New  York  to  face  drug  trafficking charges.

 According  to  the  newspaper,  the  White  House  is  currently  promoting  the  recovery  of  Venezuela’s  economy  through  control  of  oil  exports  and  supervision  of  the  distribution  of  financial resources.

 “A  critical  next  step  is  restructuring  the  Venezuelan  government’s  unpaid  debts,”  WSJ stated.

 The  newspaper  added  that  banks  and  financial  firms  had  spent  months  lobbying  U.S.  officials  in  hopes  of  participating  in  what  they  describe  as  “one  of  the  largest  debt  restructurings  of  all time,”  comparable to the Greek debt crisis a decade  ago.

 Centerview surprised competitors

 Caracas’  decision  to  hire  Centerview  came  as  a  surprise  to  other  financial  institutions  hoping  to lead the process.

 According  to  the  report,  several  competitors  believed  they  would  have  the  opportunity  to  submit  formal  proposals  after  discussions  with  officials  from  the  U.S.  Treasury  and  State  Departments. However, Venezuela selected Centerview.

 Vice  President  of  Economy  Calixto  Ortega  Sánchez  told  the  newspaper  that  the  government  chose  the  firm  because  of  “its  deep  understanding”  of  the  Venezuelan  economy  and  the  relationship built with its executives.

 A Centerview spokesperson said:

 “We  won  the  mandate  because  our  team  is  a  global  leader,  with  unique  experience  working  on  the  largest  sovereign  debt  restructurings…  and  the  absence of any conflict of interest.”

 Investors fear losses

 The  restructuring  plan  includes  significant  reductions  to  Venezuela’s  debt  and  an  accelerated  timetable for reintegrating the country into international markets.

 However,  WSJ  reported  that  investors  holding  Venezuelan  bonds,  including  Fidelity  and  T.  Rowe  Price ,  have  expressed  concern  that  the  speed  of  the  process  could  result  in  severe  financial losses.

 Economist  Alejandro  Grisanti ,  director  of  Ecoanalítica ,  warned  the  newspaper  that  the  lack  of financial transparency complicates any renegotiation.

 “In  such  a  primitive  environment,  the  idea  that  this  can  be  done  quickly,  at  the  speed they are suggesting, inevitably raises doubts,” he said.

 Grisanti added:

 “Venezuela not only needs to renegotiate its debts, it needs to rebuild trust.”

 Based on information from The Wall Street Journal.