Venezuela-finally and officially-defaulted on its bonds

Adjust Comment Print

S&P says Venezuela is also overdue on four other bond payments worth a total of $420m but that the grace period has not yet expired on those payments.

The Standard & Poor's agency has downgraded Venezuela's sovereign credit rating to "selective default" after the country missed a deadline for a $US200 million ($A280 million) bond payment.

In the meantime, China said its massive financing of Venezuela was "proceeding normally", and Russian Federation was expected to sign an agreement as early as Wednesday to restructure $3 billion of Caracas's debt, according to sources in Moscow familiar with the matter.

Venezuelan government representatives met with creditors to try and renegotiate the debt, an initial meeting from which no agreements or concrete proposals emerged and at which the Nicolas Maduro administration informed its creditors of its limitations to pay. The government held a meeting with bondholders in Caracas on November 13 about a debt restructuring (generally considered akin to default), which is typically used to determine how much less investors will be paid than officially owed.

Worldwide credit ratings agency Standard & Poor's has declared Venezuela to be in "selective default".

Bombardier gets second customer for its C series jet in a month
C-Series wings are made at Bombardier's Belfast operation, providing employment for about 1,000 people. The jet, the larger of two C Series versions, can carry 130 to 160 passengers.


"We would very likely consider any Venezuelan restructuring to be a distressed debt exchange and equivalent to default given the highly constrained external liquidity", it said.

The sanctions also impose a ban on USA entities buying any new Venezuelan debt issues, complicating the government's debt restructuring plan.

The agency said it acted after a 30-day grace period had passed on payments on two bonds.

Under the sanctions, no United States citizen can do business with Venezuelan individuals on the list.

Comments