Venezuela has initiated a formal restructuring of its sovereign and PDVSA debt following the removal of Nicolás Maduro and the issuance of key US licenses. UBS estimates recovery values between 55 and 65 cents on the dollar based on improved oil price outlooks.
Key Takeaways
- 1.Venezuelan authorities have officially launched a formal process to restructure sovereign and PDVSA external debt following US license approvals.
- 2.The political landscape has shifted following the removal of Nicolás Maduro on January 3, leading to the new Delcy Rodríguez administration collaborating with the US.
- 3.Restructuring resolution is expected within a 12-18 month timeline.
Table of Contents
- Deep changes under way
- Immediate next steps
- Recovery value
- Global asset class preferences definitions
- Appendix
- Risk information
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Authors
Alejo CzerwonkoAlberto Rojas
Securities
Venezuela Sovereign DebtPetróleos de Venezuela, S.A. (PDVSA) External Debt
Themes
Sovereign Debt RestructuringGeopolitical TransitionEnergy Sector Recovery
Regions
Latin AmericaVenezuelaUnited StatesChina