Venezuela
Venezuelan opposition front-runner Machado disqualified from 2024 presidential election.
Venezuelan opposition leader María Corina Machado has been barred from public office for 15 years, according to the country's Comptroller's office. The Comptroller’s office indicated that this restriction was imposed on Machado in 2015 and will prevent her from contesting the 2024 presidential election. This decision follows an overhaul of the electoral body. Unfazed, Machado addressed a rally in Barinas, saying the ban indicates a regime making "mistake after mistake". Recent ORC Consultores polls showed Machado leading with 46.4% voter intent, a significant rise from 35.4% in November.
The U.S. State Department said Venezuelans should be able to act freely in the 2024 presidential elections, and disqualifying Machado "deprives" them of political rights. Venezuela's government on Saturday said it rejected the U.S. stance around Venezuela’s upcoming elections, calling it "interference," a day after the U.S. criticized Venezuela's decision to disqualify an opposition candidate. The ban does not affect Machado's ability to run in the primary, but it does prevent her from registering in the 2024 presidential race. The ban questions Maduro’s attempts to achieve international recognition for upcoming 2024 presidential elections. Free and fair elections was one of the main conditions for lifting of the U.S. sanctions.
Venezuela’s leading opposition candidate to present debt restructuring plan in New York.
According to a report seen by Bloomberg, Venezuela’s leading opposition candidate, María Corina Machado from Come Venezuela party, will virtually present her economic plan on 18th July, including a debt restructuring proposal of USD 60bn of defaulted bonds issued by Venezuela and PDVSA, at the Americas Society Council in New York. Machado’s restructuring plan includes establishing a friendly agreement with debtholders, swapping some sovereign debt for ownership or stakes in state-owned enterprises that would be privatized under her tenure as well as measures to reduce the nation’s fiscal deficit and address Venezuela’s energy sector problems. If elected, Machado has pledged to privatise PDVSA.
While some recent polls put Machado as the frontrunner in primary elections, time for any negotiation is running out, as the six-year statute of limitations under the New York law on the USD bonds is close to expiring and creditors would be forced to sue to protect their rights to demand payment in court, according to Bloomberg. Seeking to buy time, the Maduro administration offered in May to unilaterally suspend the statute of limitations, but this decision is not valid while his government remains illegitimate under US law. The opposition, however, which is recognised by the US to represent Venezuela, has yet to present their plan on the matter.
Venezuela pursues debt settlement with Crystallex, Conoco, bondholders.
Negotiators representing Venezuela and appointed by the National Assembly elected in 2015 have held settlement talks with bondholders and creditors owed billions of dollars from defaults and expropriation claims, the head of a board supervising Venezuela’s foreign oil assets told Reuters. A negotiation team representing Venezuela also has held talks with ConocoPhillips, but they have not swapped financial proposals, he said. Talks with Siemens Energy and Red Tree Investments, the other two creditors in the Delaware case, have not begun.
U.S. judge to set auction calendar for PDV Holding, parent company of Citgo.
A U.S. District Court Judge Leonard Stark signalled last week that he could rule shortly on a final auction schedule for Venezuela-owned U.S. based PDV Holding to satisfy creditor claims, while pushing back against one of Venezuela's key objections. Stark has laid out an auction to sell shares in PDV Holding - whose only asset is Citgo - to repay billions of dollars in claims against Venezuela. A proposed schedule aims to start marketing in September and finalise sale by mid-2024. The judge will not seek permission to launch the auction without having shares of PDV Holding in the hands of the court. OFAC has said the auction could go ahead, but participants would need an additional license to participate and to take possession of assets.
- Last April, in the case of Crystallex v. Venezuela, Judge Leonard Stark issued a Memorandum Order, which revealed a shift in the US approach to sanctions against Venezuela, adopting a non-enforcement stance for creditors involved in transactions aimed at reaching settlement agreements and pursuing the seizure of PDVSA assets in the U.S. to recover their debts. Among the materials received from OFAC was a license granting the Court full authority to determine which individuals or entities could be added as “Additional Judgment Creditors.” These Additional Judgment Creditors will be permitted to participate in the sales process, subject to an additional OFAC license.
- Stark has recognized claims from miner Crystallex International, oil firm ConocoPhillips, Siemens Energy and Red Tree Investments totalling USD 3.1bn that could receive auction proceeds. Several other companies have attempted to attach their claims or be acknowledged as Additional Judgment Creditors to share proceeds of the auction. Currently, PDVH is indebted to creditors in the amount of USD 10bn. If we consider the recent judgment favouring ConocoPhillips against Venezuela, which amounts to USD 10.2bn, the overall debt reaches USD 20.1bn. However, Venezuela currently appeals the recognition of PDVSA as an alto ego of Venezuela during the Interim Government of Guaido.
PDV Holding receives pledged Citgo Holding shares from Rosneft.
A subsidiary of Russian oil company Rosneft delivered a certificate representing a 49.9% stake in Citgo Holding to Venezuela’s opposition-controlled PDV Holding (a Holding company in the U.S.) after it took legal action to recover it. In May 2023, OFAC issued a licence to PDV Holding authorising Rosneft to transfer the share certificate and the termination of the guarantee in favour of Rosneft Trading. The shares were pledged to the Russian firm as collateral for a USD 1.5bn anticipated oil payment. The certificate’s transfer effectively ends Rosneft’s claim over almost half of Citgo. The other half is currently pledged to the holders of a PDVSA bond that expired in 2020, who are also trying to attach the shares for payment. The transfer took place as a Delaware court is considering the sale of PDV Holding shares.
The PDVSA20 bondholders are requesting the Court to vote on the shares of Citgo Holding.
The PDVSA20 bonds are guaranteed by a 50.1% stake in Citgo Holding. The petition requests to modify the current stay on the enforcement of the guarantee, requesting the PDVSA Parties to commit to the following: (i) refraining from using any assets of Citgo Holding or Citgo Petroleum to satisfy PDVSA's creditors and (ii) abstaining from issuing any securities, loans, indebtedness, or derivatives related to Citgo Holding or Citgo Petroleum to PDVSA's creditors. Furthermore, the bondholders are also asking the Court to permit them to exercise their contractual rights, as outlined in the Pledge Agreement, to vote on the shares of Citgo Holding.
The current appeal does not seem to affect the auction of PDV Holding. In fact, the buyers of PDV Holding are compelled to pay PDVSA20 bondholders to avoid the execution of the guarantee. However, the trustees have solicited the Court to recognize the right to vote with the shares of Citgo Holding, as this would allow them to appoint new board members. If the Court were to concede this appeal, the National Assembly elected in 2015, which currently represents the Venezuelan government in the US, could lose control of PDV Holding and Citgo.
After the creation of the interim government in 2019, the US modified the license to delay bondholders from seizing PDV Holding. However, the recent shift in US policy was signalled by a letter from the Department of Justice to the court officer overseeing the auction process of PDV Holding, stating that the US will not enforce sanctions on debtholders carrying out all the required steps to prepare the auction or to reach settlement agreements with Venezuela.
Venezuela is still disputing validity of PDVSA 2020 bond and its guarantee which was issued without consent from the then National Assembly, as required by the Venezuelan constitution. The dispute now lies with New York's highest court, which needs to determine whether Venezuelan law should be considered in the federal court ruling that favoured the bondholders.
Venezuela loses UK appeal in long-running gold reserves court case.
The Venezuelan Central Bank (BCV) board controlled by the government of President Nicolas Maduro on Friday lost its latest appeal over USD 1.95bn of the country's gold reserves held in the Bank of England. The BCV was challenging a previous ruling that certain decisions of Venezuela's top court should not be recognised by English courts in the gold case. Lawyers representing the Venezuelan central bank in the challenge said it will now be returned to London's High Court to determine next steps, now former Venezuela opposition leader Juan Guaido is no longer recognised by Britain's government as the country's leader. The BCV had taken up the case three years ago saying it wanted to sell the gold, which amounts to around 15% of Venezuela's foreign currency reserves, to fund the country's response to the coronavirus pandemic.
Russian JV’s in Venezuela seeks Chevron like oil for debt deal.
A Russian oil firm is asking PDVSA for permission to take control of exports from their joint ventures to revive cash flow from the five companies, which have been hard-hit by U.S. sanctions, two people involved in the talks said. Roszarubezhneft - a state-owned company that acquired Russian oil major Rosneft's assets in Venezuela in 2020 - wants to market the crude and fuel oil produced by the joint-ventures - similar to a deal PDVSA struck last year with U.S. oil producer Chevron. Oil production at the five joint ventures has dwindled to between 103,000 and 120,000 barrels of crude per day (bpd) this year. To date, no company has reached a similar deal to that of Chevron with Venezuela. The most similar deal achieved was that of Spanish Repsol and Italian Eni, which received a license from the Venezuelan government to export gas liquids produced by their gas joint ventures in Venezuela with PDVSA to Europe.
Venezuela’s PDVSA 1Q23 oil exports said to be 13% higher yoy.
PDVSA’s 1Q23 oil exports rose 13% yoy. Monthly exports in May were the highest since October with 9.8 million barrels, with breakdown: Merey 16 was highest export, at 50.6 million barrels; fuel oil was at 21.2 million barrels; Diluted Crude Oil (DCO) was at 11.8 million barrels
Venezuela’s temporary ban on mining cryptocurrencies within the country.
State regulators first ordered a halt on crypto mining in March, after opening an investigation onto large corruption scheme in which crypto wallets were allegedly used to redirect payments owned to PDVSA. And the Petro, which never took off but was once deemed by Maduro as Venezuela’s gateway to the future, stepped trading May 24. The vast majority of miners are focused on Bitcoin and has nothing to do with the Petro, as the tokens are 100% pre-mined by the government. Still, an estimated 75,000 units of mining equipment have been disconnected. The intelligence police, known as Sebin, have been conduction audits of miners, seeking confirmation that funds used to purchase equipment did not come from the oil corruption scheme. Miners operating in Venezuela had been partially insulated from higher costs, as the country enjoys some of the lowest electricity rates in the world.
Venezuela Commission says 14 to run in opposition primaries.
Fourteen opposition candidates will run in opposition primary elections 22nd October 2023, the primaries committee said in a statement. Among candidates accepted by the committee is former lawmaker María Corina Machado, who leads polls. Former governor and two-time presidential candidate Henrique Capriles Radonski is also officially running.
The winner of the primary elections will be the candidate of the main opposition parties in next year’s presidential race and will face the ruling party’s candidate, widely expected to be President Nicolas Maduro in a bid for his third six-year term.
CELAC and CARICOM ministers meet in Caracas.
Ministers from the Community of Latin American and Caribbean States (Comunidad de Estados Latinoamericanos y Caribeños, CELAC) and the Caribbean Community (Comunidad del Caribe, CARICOM) met in Caracas to discuss regional unity. The news supports the Maduro administration’s foreign policy efforts on building and strengthening multilateral organizations that do not involve the US.
Issuer | Ticker | BID | ASK |
Republic of Venezuela | VENZ 13 ⅝ 08/15/18 | 8.5 | 9.5 |
Republic of Venezuela | VENZ 7 12/01/18 | 6.0 | 7.0 |
Republic of Venezuela | VENZ 7¾ 10/13/19 | 6.0 | 7.0 |
Republic of Venezuela | VENZ 6 12/09/20 | 6.0 | 7.0 |
Republic of Venezuela | VENZ 12¾ 08/23/22 | 8.5 | 9.5 |
Republic of Venezuela | VENZ 9 05/07/23 | 8 | 9 |
Republic of Venezuela | VENZ 8¼ 10/13/24 | 8.5 | 9.5 |
Republic of Venezuela | VENZ 7.65 04/21/25 | 8.25 | 9.25 |
Republic of Venezuela | VENZ 11¾ 10/21/26 | 8.5 | 9.5 |
Republic of Venezuela | VENZ 9 ¼ 09/15/27 | 8.5 | 9.5 |
Republic of Venezuela | VENZ 9¼ 05/07/28 | 8.5 | 9.5 |
Republic of Venezuela | VENZ 11.95 08/05/31 | 8.5 | 9.5 |
Republic of Venezuela | VENZ 9 ¾ 01/13/34 | 8.0 | 9.0 |
Republic of Venezuela | VENZ 7 03/31/38 | 8.0 | 9.0 |
Republic of Venezuela | ICSID Claims | Call desk for Prices | |
Petróleos de Venezuela SA | PDVSA 8½ 10/27/20 | 36 | 41 |
Petróleos de Venezuela SA | PDVSA 9 11/17/21 | 3.0 | 4.0 |
Petróleos de Venezuela SA | PDVSA 12¾ 02/17/22 | 3.0 | 4.0 |
Petróleos de Venezuela SA | PDVSA 6 10/28/22 | 2.5 | 3.0 |
Petróleos de Venezuela SA | PDVSA 6 5/16/24 | 3.0 | 4.0 |
Petróleos de Venezuela SA | PDVSA 6 11/15/26 | 3.0 | 4.0 |
Petróleos de Venezuela SA | PDVSA 5⅜ 04/12/27 | 3.0 | 4.0 |
Petróleos de Venezuela SA | PDVSA 9¾ 05/17/35 | 3.0 | 4.0 |
Petróleos de Venezuela SA | PDVSA 5½ 04/12/37 | 3.0 | 4.0 |
*Indicative price for position with institutional size only. For smaller sizes please call desk
Argentina
Argentina paid USD 2.7bn payment to the IMF.
The IMF released a statement on Friday that Argentina was current in its payment obligations, after the government made a USD 2.7bn payment to the fund using payment in Chinese yuan and the country's holdings of the fund's special-drawing rights. The use of yuan indicates the country's weak dollar position. As a result of the payment, Argentina's FX reserves saw a sharp decrease to around USD 27.9bn for end-June, bringing foreign reserves to their lowest since March 2016. The IMF and Argentina remain locked in talks to release funds from USD 44bn program and ease economic targets. Argentina's economy ministry said a team will travel to Washington early next week to continue negotiations. Earlier in the week, Argentina announced USD 1bn credit from the World Bank and the Inter-American Development Bank (IDB). The bonds were on average 2 points firmer on the week.
Issuer | Ticker | Bid | Ask |
REPUBLIC OF ARGENTINA | ARGTES 16 10/17/23 | 84.2 | 84.8 |
REPUBLIC OF ARGENTINA | ARGENT 5 7/8 01/11/28 | 43.3 | 44.0 |
REPUBLIC OF ARGENTINA | ARGENT 1 07/09/29 | 32.4 | 33.0 |
REPUBLIC OF ARGENTINA | ARGENT 0 1/2 07/09/29 | 27.3 | 30.4 |
REPUBLIC OF ARGENTINA | ARGENT 0 1/2 07/09/30 | 33.2 | 33.8 |
REPUBLIC OF ARGENTINA | ARGENT 0 1/8 07/09/30 | 26.7 | 29.7 |
REPUBLIC OF ARGENTINA | ARGENT 8.28 12/31/33 | 36.2 | 37.0 |
REPUBLIC OF ARGENTINA | ARGENT 8.28 12/31/33 | 39.1 | 39.7 |
REPUBLIC OF ARGENTINA | ARGENT 0 7/8 07/09/35 | 25.6 | 27.5 |
REPUBLIC OF ARGENTINA | ARGENT 1 1/2 07/09/35 | 29.8 | 30.4 |
REPUBLIC OF ARGENTINA | ARGENT 3 7/8 01/09/38 | 35.1 | 35.7 |
REPUBLIC OF ARGENTINA | ARGENT 2 1/2 12/31/38 | 47.4 | 48.2 |
REPUBLIC OF ARGENTINA | ARGENT 3.38 12/31/38 | 30.4 | 31.1 |
REPUBLIC OF ARGENTINA | ARGENT 3 3/4 12/31/38 | 43.3 | 44.0 |
REPUBLIC OF ARGENTINA | ARGENT 2 1/2 12/31/38 | 44.3 | 45.0 |
REPUBLIC OF ARGENTINA | ARGENT 3 3/4 12/31/38 | 44.2 | 45.0 |
REPUBLIC OF ARGENTINA | ARGENT 3.38 12/31/38 | 28.9 | 31.0 |
REPUBLIC OF ARGENTINA | ARGENT 0.67 12/31/38 | 13.0 | 26.4 |
REPUBLIC OF ARGENTINA | ARGENT 2 1/2 12/31/38 | 44.3 | 45.0 |
REPUBLIC OF ARGENTINA | ARGENT 3 1/2 07/09/41 | 31.9 | 32.6 |
REPUBLIC OF ARGENTINA | ARGENT 2 3/4 07/09/41 | 26.0 | 27.3 |
REPUBLIC OF ARGENTINA | ARGENT 1 1/2 07/09/46 | 29.9 | 30.6 |
REPUBLIC OF ARGENTINA | ARGENT 0 7/8 07/09/46 | 25.9 | 28.0 |
REPUBLIC OF ARGENTINA | ARGENT 6 7/8 01/11/48 | 47.1 | 47.9 |
*Indicative price for position with institutional size only
Keine Kommentare:
Kommentar veröffentlichen