CARACAS, 15th November 2019 – Juan Guaido’s interim government issued a statement explaining its decision to request the annulment of the PDVSA 2020 bond issuance. According to the declaration, the decision to go to court to clarify this situation does not mean that the interim administration is repudiating that issuance nor any of the others. The statement highlights that the bond represents a small part of Venezuela’s external debt (“less than 1%”) and that this issuance is different from all the others due to the fact that it is backed by 50.1% of CITGO’s shares, which is exactly the reason why it is unconstitutional, according to PDVSA’s ad-hoc board.
The interim administration also argues that PDVSA only decided to file the lawsuit after a negotiation process, presumably with the holders of the 2020 notes, failed. The statement ends by ratifying Venezuela’s willingness to reconcile all the claims inherited while analysing, on a case-by-case basis, each issuance to ascertain its legitimacy. You can read the full statement here: https://presidenciave.com/es/internacional/juicio-sobre-bonos-pdvsa-2020-no-implica-repudio-de-deuda-externa-de-venezuela/