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Sunday, February 21, 2021

US Judge Rules that Venezuelan PDVSA’s 2020 Bonds Are Still Valid

A United States judge ruled on Friday morning that 2020 bonds of Venezuelan oil giant PDVSA are “valid and enforceable,” which analysts believe it represents a significant setback for Venezuela’s opposition leader and interim president Juan Guaido.

A United States judge ruled on Friday morning that 2020 bonds of Venezuelan oil giant PDVSA are “valid and enforceable,” which analysts believe it represents a significant setback for Venezuela’s opposition leader and interim president Juan Guaido.

The bonds are backed by half of the shares in the PDVSA’s US refiner and partner company Citgo, and Guaido’s legal team had sued last year to declare the bonds invalid by pointing out that the socialist regime of dictator Nicolas Maduro had issued them without the approval of Venezuela’s National Assembly.

However, court documents obtained by the newspaper said that the ruling doesn’t pave the way for creditors to immediately seize shares in Citgo’s parent.

The Trump administration has used its economic sanctions against the Venezuelan regime looking to oust Maduro and to prevent bondholders from taking such action through at least January 2021.

Guaido’s team took control of Citgo in 2019 after he was recognized by the Trump administration and over 50 nations around the world as the legitimate leader of Venezuela, on the grounds that Maduro rigged his 2018 re-election. Guaido’s overseas representatives stopped making payment on the 2020 bonds last year.

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