Venezuela Creditors Prepare for Debt Negotiations Amid Political Thaw
Major institutional investors including Fidelity, Morgan Stanley, and Greylock Capital have formed the Venezuela Creditor Committee, signaling readiness to negotiate the country's $60 billion defaulted debt. The group asserts successful restructuring could jumpstart Venezuela's crippled economy, particularly if paired with eased US sanctions.
Bond markets reacted swiftly to shifting political winds. Venezuelan sovereign notes due 2027 surged over 10% this week - their strongest performance since 2023 - while PDVSA debt also rallied. Distressed debt specialists and ETF managers are increasingly monitoring the situation.
The path forward remains fraught with complexity. While acting leader Delcy Rodriguez has expressed willingness to collaborate with Washington, US capital market restrictions still prevent Venezuela from accessing critical financing. Oil sector uncertainties further cloud the restructuring outlook.
