Venezuela Representatives of the Maduro's government and the opposition are set to meet in Mexico for another time to try reach a new step forward into the ending of the big political crisis

 

Venezuela Representatives of the Maduro's government and the opposition are set to meet in Mexico for another time to try reach a new step forward into the ending of the big political crisis. The dialogue will look to settle and ease sanctions in the country but with requirements from both sides. Maduro’s representation is looking primarily to negotiate with the opposition leader Juan Guaido on an agenda only focused on lifting sanctions, while the representation of Guaido is looking for fair and free elections in exchange of easing periodically and not immediately sanctions imposed by the U.S. government. The dialogue will be mediated and supported by international parties and Norway, which acted in the past as mediator in the previous dialogue taken place in Barbados in 2019 between the two parties were no agreement was met. The new negotiations happen to appear after chief diplomats from the U.S., the European Union and Canada said they would reconsider the easing of the sanctions if the two political sides show any form of improvement on finding a solution to the ongoing political crisis and transparent elections. With respect to other news, last week the minister of foreign affairs appointed by Juan Guaido, Julio Borges, during his interview discussed a plan for the interim government to transfer state-owned companies to a trust that will be managed by a multilateral organisation. The proposal states that once the democracy returns to Venezuela the trust appointed to manage the state-owned companies will be dissolved. The interim government specified that this strategy would help the assets of the state-owned companies not to suffer from corruption and creditors, bringing transparency in operations and avoiding management of the assets for political interests. Last but not least, a delegation from the European Union has been sent to Venezuela to evaluate everything that will happen in the upcoming “super-election”. Juan Guaido assured during a press conference that the delegation will verify that the current electoral conditions will be proceeded with “European Standards” for free and fair elections. The evaluation of the EU should reflect not only technical but also political conditions, candidates, parties, cards, disqualifications. Interim president Guaido claims that currently the conditions are not “real” and that the electoral process needs to be tailored in a way that will not benefit an of the sides making them fair.         For Venezuela bonds, the de-jure and de-facto administrations disagree on how bondholders should look at prescriptions periods. On 28th 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 this statement, 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: the Fiscal Agent receives the full amount owed by the Republic and the holders have been notified of such event. The attorney general also indicated that the statutory limitation period of six years under the laws of New York still applies. This was preceded, however, by the launch on 15th September 2020 of the Maduro conditional offer and a subsequently imminent 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 would expire. Under the offer, bondholders would agree to renounce rights to litigate and in exchange prescriptions deadlines would be waived. http://www.mppef.gob.ve/comunicados-oficiales/ The Maduro conditional offer expired on 14th 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. The proposed mechanism would require licenses from the US Treasury Department's Office of Foreign Assets Control, which administers sanctions.

 

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 The Province of Buenos Aires has extended the deadline for creditors to respond to its debt restructuring proposal to 23 July, according to a regulatory filing. The province will carry on the talks around $7bn restructuring plan in hopes of finding an agreement between the parties involved after more than a year of failed negotiations. It was added to a statement issued by the local government that bondholders, including Ad Hoc creditor committee members, agreed to keep on the talks while maintaining the confidentiality through non-disclosure agreements until a solution is found.

 

Credit Type / ISIN Indicative price (%)* Argentina ARGENT 0 1/8 07/09/30 35.59 36.17 Argentina ARGENT 7 1/8 06/28/17 40.78 44.64 Argentina ARGENT 1 07/09/29 37.79 38.53 Argentina ARGENT 7 1/2 04/22/26 45.53 49 Argentina ARGENT 5 5/8 01/26/22 42.22 48.56 Argentina ARGENT 0 1/8 07/09/35 31.82 32.64 Argentina ARGENT 6 7/8 01/26/27 42.13 45.92 Argentina ARGENT 6 7/8 01/11/48 42.15 47.15 Argentina ARGENT 2 01/09/38 38.28 38.66 Argentina ARGENT 0 1/8 07/09/46 31.91 32.93 Argentina ARGENT 4 5/8 01/11/23 42 51.32 Province of Buenos Aires BUENOS 7 7/8 06/15/27 43.37 46.05 Province of Buenos Aires BUENOS 9.95 06/09/21 44.25 45.95 Province of Buenos Aires BUENOS 6 1/2 02/15/23 41.94 47.09 Province of Buenos Aires BUENOS 4 05/15/35 35.6 40 Province of Buenos Aires BUENOS 9 5/8 04/18/28 45.97 49.91 YPF YPFDAR 8 1/2 07/28/25 78.35 80.9 YPF YPFDAR 8 3/4 04/04/24 88.49 89.5 YPF YPFDAR 6.95 07/21/27 70.07 72.52 YPF YPFDAR 7 12/15/47 64.52 66.56 YPF YPFDAR 8 1/2 06/27/29 71.36 74.02 Banco Macro BMAAR 6 3/4 11/04/26 82.75 84.94 * Indicative price for positions with institutional size only. For smaller sizes please call des