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LatinNews Daily - 17 September 2020

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In brief: Venezuela makes conditional offer to bondholders

* Venezuela’s finance minister and vice president Delcy Rodríguez has announced a “conditional offer” for holders of bonds issued by the government, the state-owned oil company Pdvsa, and the state-owned utility company Electricidad de Caracas, for a deal that would suspend statutes of limitation for repayments contained in the bond agreement. Rodríguez stated that the government was proposing this agreement to “guarantee that investors are not affected by the illegal actions taken by those who hold power in the US” – a reference to the various economic sanctions imposed by the US authorities on Venezuelan government officials. In 2017 Venezuela suspended payments to holders of many bonds and attempted to begin a debt restructuring process. Rodríguez said that in exchange for waiving the statutes of limitation, bondholders would have to agree not to sue for non-payment or suspend ongoing legal action. The deal only stands if bondholders who own more than 75% of the existing debt accept the offer. Investors have until 13 October to respond.