Economy

S&P declares Venezuela in selective default after missed payments

S&P declares Venezuela in selective default after missed payments”

Participants at the meeting told AFP that officials said the government meant to form working groups to evaluate short- and mid-term debt renegotiation proposals, but gave no specifics.

But Venezuela's unpaid obligations total $420 million, and four additional coupon payments are overdue but within their grace periods.

S&P's verdict came after the Venezuelan government met with global creditors in Caracas but offered no concrete plan for restructuring its $150 billion debt.

In the past, despite the hardships its people suffer, Venezuela has used its foreign reserves to make bond payments.

President Nicolas Maduro has formed a commission to restructure Venezuela's sovereign debt and that of state oil company PDVSA.

While placing those latter two ratings on CreditWatch, S&P added that it saw a one-in-two chance Venezuela night default again within the coming three months.

Separately, the Luxembourg Stock Exchange said it was halting trading of Venezuela's 2019 and 2024 bonds due to an "event of default".

Vice-president El Aissami blamed United States sanctions for delays to Venezuela's debt repayments.

There's still hope for restructuring with only some issues in peril.

A committee of the International Swaps and Derivatives Association (ISDA) is weighing whether holders of PDVSA debt with default insurance - credit default swaps - can collect payment.

The ratings agency said the South American nation had failed to make $200m (£153m) in repayments on its foreign debt. Nevertheless, his options are very limited.

Under the sanctions, no USA citizen can do business with Venezuelan individuals on the list.

Permanent council members Russian Federation and China boycotted the meeting, as did non-permanent members Bolivia and Egypt.



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