The Assembly in Venezuela tries to repudiate the debt of PDVSA 2020 together with the ad hoc board abroad. In Ecuador, the government introduces a new budget and opts for the gradual path
VENEZUELA
The ad-hoc administrative board of PDVSA, designated by members of the team of the president of the National Assembly, Juan Guaidó, has announced that they will take legal actions to protect their assets abroad seeking to invalidate the issuance of the PDVSA bond by 2020. The Venezuelan oil company had to pay for the penultimate amortization of the bond about $ 843MM plus $ 71MM in interest on October 28, which evidently did not happen; Before that date, some negotiations between creditors and the company were attempted but nothing was specified. The government of Donald Trump avoided a political defeat of the Venezuelan opposition by issuing a resolution that prohibits or paralyzes any transaction that involves the actions of CITGO (50.1% of the shares are the collateral of the issuance of the P20), but this expires after three months. According to the ad-hoc board and the National Assembly, the bonds would be illegal if they had not obtained approval from parliament at the time of issuance. (More details in the oil section)…