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Venezuela creditors received what some would call concepts of a schedule this week, as the country’s Economy VP Calixto Ortega said the government would take the next steps in a debt restructuring “very soon,” at the IMF and World Bank annual meetings in Bangkok this week.
According to Ortega, advisor Centerview Partners’ debt sustainability analysis was “almost ready” in June before the twin 7.2 and 7.5 earthquakes hit on the 24th of that month. Ortega also ruled out dollarizing the economy, saying it wasn’t the right path for Venezuela, adding the country needs to strengthen the bolivar and its institutions to boost the economy.
Although some creditors are eager for a quick restructuring, they may benefit from waiting for the economy to show growth first, as they could push for a lower haircut and gain the added benefit of negotiating with an elected government.
While Venezuela has no official deadline, other credits missed key dates this week but benefitted from creditors unwilling to pull triggers. Such was the case for Brazilian petrochemical Braskem, which had until 9 October to agree to commercial restructuring terms. However, the company and creditors informally agreed to push the deadlineto...
