HALISTER1: Venezuela May Plan to Keep Paying Bonds, Oxford Economics Says

Venezuela May Plan to Keep Paying Bonds, Oxford Economics Says

(Bloomberg) -- Venezuela’s proposed “restructuring” may not amount to a default, merely a plan to refinance some of the shorter-term sovereign bonds, according to Oxford Economics.
  • Maduro hasn’t mentioned a debt moratorium
  • Delayed coupons may still get paid
  • “We think the government is only planning to reprofile short-term sovereign debt while leaving PDVSA’s debt untouched”
  • Trying to restructure sovereign bonds without PDVSA’s still risks investors going after PDVSA assets
  • Government could still declare moratorium as negotiating strategy
  • Venezuela could sell bonds to non-U.S. investors and use proceeds to service debt
  • If restructuring fails “the government could return to its original strategy of cutting imports to repay bondholders”
To contact the reporter on this story: Sebastian Boyd in Santiago at sboyd9@bloomberg.net To contact the editors responsible for this story: Michael P. Regan at mregan12@bloomberg.net Brendan Walsh

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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