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Freitag, 18. August 2017

Venezuela central bank has $2 billion cash to pay 2017 debt: report Corina Pons

Venezuela central bank has $2 billion cash to pay 2017 debt: report
Corina Pons
People buy food and other staple goods inside a supermarket in Caracas, Venezuela, July 25, 2017.
Ueslei Marcelino
CARACAS (Reuters) - Venezuela's government has around $2 billion in available cash to make $1.3 billion in bond payments by the end of the year and to cover the import of food and medicine, according to documents reviewed by Reuters.

The funds that could be used for debt payment include $1.3 billion in cash and IMF Special Drawing Rights held in central bank reserves, and $700 million in separate accounts that the central bank lists as "other financial assets," according to a report by local firm Financial Synthesis.

The figures show that Venezuela, which many economists and analysts believe is on the verge of default, has the resources on hand to cover this year's sovereign bond payments.

But making the payments will leave the government of President Nicolas Maduro with minimal hard currency to import basic consumer goods, which may fuel shortages of food and medicine and spur triple-digit inflation.

"The country's financial vulnerability has been exacerbated by the weakness of the central bank's foreign currency assets," wrote economist Tamara Herrera of Financial Synthesis in a research report.

Separately state oil company PDVSA, for the remainder of 2017, faces $3.0 billion in interest and principal payments. PDVSA typically uses its own funds to make debt payments, while sovereign bond payments usually come from central bank coffers.

Maduro says the country, which is struggling under a deep recession as its socialist economy unravels, is the victim of an economic war. He has promised to make all bond payments.

The central bank did not respond to a request for comment on available funds to make debt payments.

International reserves stood at $9.9 billion on Thursday, near a 22-year low.

Most of the country's reserves are tied up in gold that cannot be used in financial transactions without going through a certification process in another country, meaning there is little short-term opportunity to use it for debt payments.

The central bank's financial statements also list "other financial assets" of some $30 billion, which economists say include exotic and illiquid securities that would require complex financial operations to be converted to cash.

These assets include derivative securities called structured notes, promissory notes issued by PDVSA to the central bank, and accounts receivables for oil sold through cooperation agreement Petrocaribe, according to Herrera and a document seen by Reuters.

"The majority of these securities have a market value of zero," Herrera wrote.

Local consultancy Ecoanalitica estimates that the government could raise $2.6 billion through the sale of bonds and treasury notes listed in the central bank's "other financial assets" category.

Writing by Brian Ellsworth and Girish Gupta; Editing by Bernadette Baum

Venezuela is Like... PDVSA's Alter Ego, and Vice Versa?

Venezuela is Like... PDVSA's Alter Ego, and Vice Versa?

posted by Mark Weidemaier
And so it begins. As Anna notes, Venezuela is in dire straits, yet its stubborn insistence on paying bondholders puts it in the running for "world's slowest train wreck." When the wheels finally leave the tracks, expect a free-for-all in which competing claimants (bondholders, arbitration claimants, etc.) fight to recover as much as possible, both from the government and from state-owned oil company PDVSA. The major players will include creditors holding billions of dollars in arbitration awards against Venezuela. These creditors, unlike those holding government or PDVSA bonds, need not fear a debt restructuring. They will, however, have to find attachable assets that can be seized to satisfy their claims.
Enter Canadian mining company Crystallex, which has been trying to enforce a $1.2 billion arbitration award against Venezuela, so far without success. A few days ago, it tried a new tack--one with broader implications for any restructuring of Venezuela's or PDVSA's debt. Crystallex asked a federal court in Delaware to attach the shares of PDV Holding, Inc., a Delaware company that is the ultimate U.S. parent of CITGO petroleum. PDV Holding is owned by PDVSA, which, in turn, is owned by Venezuela.
Whether Crystallex can seize the shares depends on whether PDVSA (which owns them) can be treated as the alter ego of Venezuela (Crystallex's opponent in the arbitration). If not, Crystallex is out of luck; it can't seize property that doesn't belong to Venezuela. But if PDVSA is Venezuela's alter ego, then not only Crystallex, but potentially any other creditor of Venezuela, can look to the oil company to satisfy the government's debts. The same goes in reverse: Creditors of PDVSA might be able to look to the government to satisfy their claims.  
These questions of "alter ego" liability will play a crucial role in Venezuela's debt crisis. We have discussed this subject multiple times already here on Credit Slips, mostly in connection with proposals to have the government strip PDVSA of its right to exploit hydrocarbon reserves. An even more important question--which I hope to address in another post--is whether PDVSA can structure its operations to sell oil in the United States without having creditors seize the receivables. This question also depends in part on the law of alter ego liability. Yet another question--raised by Crystallex--is whether the government's creditors can seize its indirect stake in CITGO.*  
It's early days in Crystallex's attempt to seize PDVSA's interest in PDV Holding. Crystallex has asked to submit an extra-long brief justifying its request. Here's a copy of the proposed brief, which offers a forceful and relatively complete argument for why PDVSA should be treated as Venezuela's alter ego. In brief: "PDVSA is so extensively controlled by the government that it is impossible to say where one ends and the other begins." To make the point, Crystallex has mined PDVSA's Twitter feed, noting that on at least 100 occasions, PDVSA has tweeted "PDVSA es Venezuela."
I don't know what this proves, except that I should be glad not to have worked at the law firm representing Crystallex. ("Hey Weidemaier, we need you to stay late to count how many times PDVSA has tweeted that it "is" Venezuela!) The doctrine of alter ego liability does ask whether the shareholder (Venezuela) controlled the entity (PDVSA). But in the context of state-controlled entities, this question can be a bit silly. What should matter is whether the government has used the corporate form to defraud creditors or in ways that undermine the Foreign Sovereign Immunities Act. Still, this case is one to watch. If the court holds that PDVSA is Venezuela's alter ego, this will complicate the (inevitable) government and PDVSA debt restructurings.  
* Query why Crystallex values PDV Holding shares. Shareholders can be wiped out in bankruptcy and are last in line behind other creditors, of which CITGO has plenty. On the other hand, seizing the shares might allow Crystallex to disrupt Venezuela's oil pipeline to the United States and would probably force the government to make some hard choices about how to structure its U.S. oil operations.

Donnerstag, 17. August 2017

Donnerstag, 17. August 2017 Carpevigo AG in München im Urkundenprozess zur Zahlung von ca 16.000 EUR verurteilt !!! jetzt gehts zur Sachen.....!!!! Eingestellt vo

Donnerstag, 17. August 2017

Großbritannien und Deutschland „rupfen“ Venezuela, während Uncle Sam aufmerksam zuschaut. Karikatur aus dem New York Herald, Januar 1903

Pence: US Sees Peaceful Way Out Of Venezuela's "Tragedy Of Tyranny"

Pence: US Sees Peaceful Way Out Of Venezuela's "Tragedy Of Tyranny"

Buenos Aires/WASHINGTON (Alliance News) - US President Donald Trump believes there is a ...

Alliance News16 August, 2017 | 7:04AM
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Buenos Aires/WASHINGTON (Alliance News) - US President Donald Trump believes there is a peaceful way to restore democracy and end the crisis in Venezuela, his vice president said Tuesday.
Pence spoke at length about the turmoil in Venezuela during a major policy address in Buenos Aires on the second leg of a visit to Latin America.
Pence said while much of the region has traveled the road to economic growth and freedom, in Venezuela "we are seeing tragedy of tyranny play out before our eyes in our own hemisphere."
But he said democracy can be restored by peaceable means, adding that Trump sent him to Latin America to spread that message and to make it clear that "the US will not stand by while Venezuela crumbles."
Pence's comments follow Trump's statement of Friday that the US has not ruled out a military option for dealing with the situation in Venezuela.
Pence moderated those words, saying that while the US has many options, Trump "remains confident that working with all of our allies across Latin America, and cross the wider world, that we can achieve a peaceable solution restoring democracy and ending the crisis facing the people of Venezuela."
The political crisis in Venezuela has been at the top of Pence's agenda during his tour, which started in Colombia and will take him to Chile and Panama later this week.
Pence earlier met with President Mauricio Macri and held a joint news conference with the Argentinian leader.
He told reporters the US is determined to bring the full weight of US economic and diplomatic power to bear in its efforts to end the political crisis in Venezuela.
Venezuela has experienced months of protests against President Nicolas Maduro's efforts to silence the opposition and expand his grip on power. Critics have accused Maduro of trying to establish a dictatorship by creating a new legislative body stacked with his supporters.
Maduro on Tuesday lost one of his closest allies in South America as Ecuador's leader spoke out against the embattled Venezuelan president.
"Human life is holy and inviolable; it stands above ideological and political views," Ecuadorean President Lenin Moreno was quoted as saying by newspaper El Telegrafo, in reference to the death toll which has now surpassed 120 in protests against Maduro's government.
Moreno criticized the number of political prisoners in Venezuela and called for Maduro to start talks with the opposition.
Bolivian President Evo Morales is now Maduro's only supporter in the region.
Macri said he and Pence shared their concern about developments in Venezuela during their meeting.
"We reiterated - both of us - the need to continue to demand of President Maduro an electoral schedule, respect for individual liberties, for the independence of the powers and to stop actions that have only impoverished Venezuela and have greatly damaged its population."
By Juan Garff and Gretel Johnston
Copyright dpa

VEN/PDVSA Benchmark / Sanktionen der USA gegen Maduro+Getreue.....aber noch keine Ölimportverbote

VEN/PDVSA Benchmark / Sanktionen der USA gegen Maduro+Getreue.....aber noch keine Ölimportverbote

Mittwoch, 16. August 2017

VEN/PDVSA Zahlungen