Venezuelan gov’t extends offer to energy company bondholders

Xinhua News Agency | Oct 13, 2020 at 2:30 AM

CARACAS, Oct. 12 (Xinhua) -- Venezuela's government on Monday said it decided to extend by a month its offer to bondholders of state energy companies Petroleum of Venezuela and the National Electric Corporation.

The offer allows bondholders to opt for an "agreement to interrupt the periods of prescription," given that U.S.-led economic sanctions are biting into the companies' finances, the country's Ministry of Economy and Finance said in a statement.

"With this decision, the issuers ratify their full willingness to honor the validly assumed commitments," the ministry said.

Venezuela reiterated its "willingness to move forward in a process of constructive dialogue that allows, structurally and jointly, to overcome the limitations imposed by the unilateral coercive measures adopted against the country," it said.

On Sept. 15, Venezuelan Vice President Delcy Rodriguez announced the government's "total willingness to honor the commitments validly assumed with the holders of securities issued by the Republic, by Petroleos de Venezuela (PDVSA) " and by the electricity company.

Rodriguez described the offer as "a conditional joint offer to interrupt said entities, in order to guarantee that investors are not affected by the illegal actions of those who hold power in the United States."

In 2017, Venezuela announced its intention to restructure its debt, and called national and international creditors to talks, but the move was obstructed by sanctions.