Venezuela

Venezuela’s opposition is finalizing an agreement with international creditors to extend a legal deadline on $60 billion of defaulted bonds, according to people with knowledge of the plan, Bloomberg News reported. The agreement being drafted by the opposition-led National Assembly — which is recognized in the US as the country’s legal representative — would suspend an upcoming statute of limitations on the debt. The offer could be approved by the National Assembly to present to bondholders as soon as this week, according to two of the people.

A U.S. court of appeals on Friday rejected Venezuela's bid to prevent six companies from joining a proposed court auction of shares in a Citgo Petroleum parent to enforce judgments for past expropriation of assets, Reuters reported. The decision allows the six to move ahead with their about $3 billion in combined claims against Venezuela state oil firm PDVSA in a Delaware federal court. That court is in the initial steps of preparing an auction as soon as September.

Negotiators representing Venezuela have held settlement talks with bondholders and creditors owed billions of dollars from defaults and expropriation claims, the head of a board supervising the country's foreign oil assets told Reuters. The talks have gained urgency as a federal court judge is to decide next month whether to kick off an auction of shares that could lead to the break-up of Citgo Petroleum, Venezuela's most prominent overseas asset. The U.S. has for years shielded Citgo from seizure under a license that will expire next month if not renewed.

A growing number of Venezuela-related expropriation claims at U.S. courts pursuing Citgo Petroleum's assets surpass $20 billion, making difficult for the Houston-based refiner to compensate them all, but some payments can be negotiated, said on Wednesday the chief of a board supervising the company, Reuters reported.

A U.S. court of appeals has granted Venezuela a temporary stay preventing six companies from joining a proposed court auction of shares in a Citgo Petroleum parent to enforce judgments for past expropriation of assets, Reuters reported. Since March, creditors including a unit of O-I Glass, Huntington Ingalls Industries, ACL1 Investments, Koch Minerals and mining firms Rusoro Mining and Gold Reserve, have been granted rights to seize shares in the parent of Venezuela-owned refiner Citgo, PDV Holding.

Venezuela will push back a legal deadline on $60 billion of defaulted debt in a bid by President Nicolas Maduro to prevent creditors from filing a wave of lawsuits while he attempts to regain recognition from the U.S., Bloomberg News reported. Maduro’s administration announced Thursday it suspended the statute of limitations on bonds issued by the government and state oil company, PDVSA, according to statements published on government websites. The suspension will be in effect for five years or until the US government lifts economic sanctions that prevent a debt restructuring.

A power struggle and a trail of unpaid oil sales led Venezuela’s ruling elite to purge one of their own inner circle this week as the government tries to recover billions in missing energy revenues, Bloomberg News reported. Energy Minister Tareck El Aissami’s resignation Monday comes after months of close oversight by Vice President Delcy Rodriguez, the regime’s most powerful official after President Nicolas Maduro.

Credit cards are becoming increasingly useless in Venezuela because of high inflation and government restrictions, hurting people already struggling to meet daily needs on low salaries, banking industry sources, analysts and consumers said, Reuters reported. The country's government imposed strict lending requirements during Venezuela's economic collapse - allowing banks to lend a maximum of 27% of their cash flow - sending local business owners abroad to seek loans.

Venezuela's state oil firm PDVSA is toughening terms for buyers after a month-long halt to most exports of crude and fuel, demanding prepayment ahead of loadings in either cash, goods or services, company documents showed, Reuters reported. PDVSA's new Chief Executive Pedro Tellechea put the move in place this month. It reinforces measures implemented last year after several buyers skipped out on payments for oil, which provides most of the South American country's income.

Inflation in Venezuela hit 234% in 2022, Vice President Delcy Rodriguez said on Monday, representing a slowdown from the previous year, as the South American country struggles with a deep and lengthy economic crisis, Reuters reported. Rodriguez provided the inflation rate during a meeting with Turkish and Venezuelan business leaders. Venezuela's central bank infrequently publishes economic data, and has not given inflation data since October.