Reuters reported that Venezuelan President Nicolas Maduro has been “sending signals” to the Biden administration, but Washington will not ease sanctions without concrete steps toward free elections, quoting a senior White House official on Monday.

 Venezuela

Reuters reported that Venezuelan President Nicolas Maduro has been “sending signals” to the Biden administration, but Washington will not ease sanctions without concrete steps toward free elections, quoting a senior White House official on Monday. The new administration is still reviewing crippling sanctions imposed by Biden’s predecessor, Donald Trump, and Biden aides have made clear they are in no rush to relax pressure on Maduro, who they call a dictator. Theses comments appeared in response of rumours that President Joe Biden might start easing sanctions after Maduro allowed the World Food Programme to begin operating in Venezuela.
Also last week, sources in the opposition consulted by news portal Voz de América (VOA) said that a new negotiation process between the government of Nicolás Maduro and the opposition could soon begin. Sources also speculate that Norway, the US, Russia, the EU, and its International Contact Group (ICG) might support the process. Allegedly, Norway had already completed the first stage of talks with the Maduro government and the opposition, confirming a willingness to negotiate. "The regime is in a position to enter into a negotiation process, and this is what is being promoted at this time," revealed the opposition source to the VOA.

For Venezuela bonds, the de-jure and de-facto administrations disagree on how bondholders should look at prescriptions periods. On 28^th September 2020, Venezuela’s opposition-designated attorney general, appointed by National Assembly President Juan Guaido, published a statement saying that it is the view of the Guaido team that the contractual prescription period has not begun to run in respect of an overdue amount of principal or interest payable under any of the bonds issued by the government. According to the opposition government, the 10 and 3 year periods set out in the prescription clause of most Venezuela, PDVSA and ELECAR bonds will not begin to run unless and until:

            (i) the Fiscal Agent receives the full amount owed by the Republic and

            (ii) the holders have been notified of such event.

At the same time, attorney general indicated the statutory limitation period of six years under the laws of New York still applies.

This followed a statement from Maduro’s finance minister Delcy Rodriguez who highlighted that with the third anniversary for the first missed bond payment in 2017 coming soon, prescription deadlines for interests will expire and the launch on 15th  September 2020 of the Maduro conditional offer. Under the offer, bondholders would agree to renounce to rights to litigate and in exchange prescriptions deadlines would be waived.
http://www.mppef.gob.ve/comunicados-oficiales/

The Maduro conditional offer expired on 14^th March 2021 and won’t be extended again, however the government said it will keep talking with Venezuela, PDVSA and Electricidad de Caracas bondholders in order to reach agreements under the same conditions as those with whom the Tolling Agreements are entered into.

 

Credit	Type / ISIN	Indicative price (%)*
Venezuela	VENZ 13 5/8 08/15/18	10	11
Venezuela	VENZ 9 ¼ 09/15/27	10	11
Venezuela	VENZ 7 3/4 10/13/19	9.5	10.5
Venezuela	VENZ 6 12/09/20	9.5	10.5
Venezuela	VENZ 12 3/4 08/23/22	10	11
Venezuela	VENZ 9 05/07/23	9.5	10.5
Venezuela	VENZ 8 1/4 10/13/24	9.5	10.5
Venezuela	VENZ 7.65 04/21/25	9.5	10.5
Venezuela	VENZ 11 3/4 10/21/26	10	11
Venezuela	VENZ 9 1/4 05/07/28	9.5	10.5
Venezuela	VENZ 11.95 08/05/31	10	11
Venezuela	VENZ 9 3/8 01/13/34	9.5	10.5
Venezuela	VENZ 7 03/31/38	9.5	10.5
Venezuela	ICSID Claims	Call desk for Prices
PDVSA	PDVSA 8 1/2 10/27/20	25	28
PDVSA	PDVSA 9 11/17/21	4.5	5.5
PDVSA	PDVSA 12 3/4 02/17/22	4.5	5.5
PDVSA	PDVSA 6 10/28/22	4.5	5.5
PDVSA	PDVSA 6 05/16/24	4.5	5.5
PDVSA	PDVSA 6 11/15/26	4.5	5.5
PDVSA	PDVSA 5 3/8 04/12/27	4.5	5.5
PDVSA	PDVSA 9 3/4 05/17/35	4.5	5.5
PDVSA	PDVSA 5 1/2 04/12/37	4.5	5.5
PDVSA	Promissory Notes	Call desk for Prices
PDVSA	Trade Receivables	Call desk for Prices

* Indicative price for positions with institutional size only. For smaller sizes please call desk 

 

Argentina

Argentina is looking to add a clause in the potential agreement with the IMF to replace the current $45bn Stand-By Arrangement (SBA) program with an Extended Fund Facility (EFF) that would allow the revision of the EFF deal in case the IMF amends the EFF’s terms and conditions in the future, Ambito Financiero reported last week. The EFFs have a repayment period of 10 years. If the IMF makes any changes to that condition in the future, Argentina would be able to renegotiate the EFF’s maturity, the Spanish-language article noted.
The Province of Buenos Aires (PBA) has extended the deadline for creditors to respond to its debt restructuring proposal to 7^th  May 2021. Also the Minister of Finance Pablo López said that the province will announce in the next few weeks terms and conditions to amend the proposal but creditors would need to show greater flexibility, the Ambito Financiero reported. As a reminder some creditors filed lawsuits in the US after negotiations with the Province failed to improve, also some creditors threatened to accelerate the bonds in case the Province doesn’t show willingness to improve terms of the proposal.

Credit	Type / ISIN	Indicative price (%)
IMPSA	IMPSA 7 ½ 12/30/25	Call desk for Prices
Argentina	ARGENT 0 1/8 07/09/30	35,5	36
Argentina	ARGENT 8.28 12/31/33	47,1	56,5
Argentina	ARGENT 7 1/8 06/28/17	40,7	44,6
Argentina	ARGENT 3 3/4 12/31/38	38,3	47,7
Argentina	ARGENT 5 7/8 01/11/28	39,3	49
Argentina	ARGENT 1 07/09/29	36,7	39,2
Argentina	ARGENT 3.38 12/31/38	38,5	43,7
Argentina	ARGENT 7 1/2 04/22/26	45,5	49
Argentina	ARGENT 6 7/8 04/22/21	47,9	49,5
Argentina	ARGENT 7.82 12/31/33	42,6	49,5
Argentina	ARGENT 5 5/8 01/26/22	42,2	48,5
Argentina	ARGENT 0 1/8 07/09/35	31,2	32,3
Argentina	ARGENT 6 7/8 01/26/27	42,1	45,9
Argentina	ARGENT 6 7/8 01/11/48	42,1	47,1
Argentina	ARGENT 0 1/8 01/09/38	37,1	37,9
Argentina	ARGENT 0 1/8 07/09/46	31,1	32,1
Argentina	ARGENT 4 5/8 01/11/23	42	51,3
Provincia de Buenos Aires	BUENOS 7 7/8 06/15/27	42,9	44,4
Provincia de Buenos Aires	BUENOS 9.95 06/09/21	45,7	47,9
Provincia de Buenos Aires	BUENOS 6 1/2 02/15/23	34,3	41,1
Provincia de Buenos Aires	BUENOS 4 05/15/35	40,4	45,5
Provincia de Buenos Aires	BUENOS 9 5/8 04/18/28	41,6	45,4
Banco Macro	BMAAR 6 3/4 11/04/26	78,3	80,9
Galiar	GALIAR 8 1/4 07/19/26	89	90,5
Pampa Energia	PAMPAR 9 1/8 04/15/29	84,1	86,2
YPF	YPFDAR 8 1/2 07/28/25	71,4	72,8
YPF	YPFDAR 8 3/4 04/04/24	81	82,7
YPF	YPFDAR 6.95 07/21/27	59,7	62,3
YPF	YPFDAR 7 12/15/47	55,9	58,4
YPF	YPFDAR 8 1/2 06/27/29	62,5	64,5
*For any other bonds please call desk for prices

* Indicative price for positions with institutional size only. For smaller sizes please call desk