Venezuela Taps Former Ecuador Minister as Financial Adviser
By- Rivera was longtime adviser to ex-Ecuador leader Rafael Correa
- Sanctions have complicated talks on Venezuela’s defaulted debt
The Venezuelan government has tapped former Ecuador Finance Minister Patricio Rivera as an adviser to engage with the nation’s foreign investors, according to two people familiar with the matter.
Rivera, a longtime aide to the socialist leader Rafael Correa, is assisting Venezuelan Vice President Delcy Rodriguez with outreach to the country’s creditors including bilateral and multilateral lenders, said the people, who asked not to be named discussing a private matter. He has previously advised the government on economic issues in recent years.
The appointment shows heightened interest from Venezuela’s side to reengage with bondholders and lobby for sanctions relief from the U.S. in order to restructure about $60 billion of defaulted debt. Rodriguez, who’s also finance minister, is effectively banned from talking with U.S. investors due to current sanctions.
Rodriguez didn’t immediately reply to requests for comment and attempts to reach Rivera were unsuccessful.
Rivera is no stranger to navigating contentious talks with creditors. He took over Ecuador’s finance ministry in 2010, shortly after the Correa government defaulted on its debt. Rivera brought the nation back to capital markets and became a familiar face in Washington and on Wall Street. When he was economic policy minister in 2015, Ecuador repaid its first bond in full in the country’s history. Rivera left his post in November 2017.
Potential aid from multilateral agencies is complicated by the fact that the Biden administration officially recognizes opposition leader Juan Guaido as Venezuela’s interim president until there’s a free and fair election.
After defaulting in late 2017, Venezuela’s debt trades at about 10 cents on the dollar. Recently, a group of creditors holding the 2025 bonds demanded full payment of overdue interest and principal in a process known as acceleration.
Hemmed in by sanctions, President Nicolas Maduro’s government has moved to lift certain controls and restrictions on the economy to deal with a severe cash crunch. Dollars are now widely accepted alongside the national currency and some state-run companies have been handed over to closely aligned private businessmen.
— With assistance by Alex Vasquez
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