Venezuela Signs $3.2 Billion Debt Restructuring Deal With Russia | Zero Hedge
Description: "The terms are flexible and very favorable for our country. We will be able to return to the level of commercial relations with Russia that we had before."
Keywords: Zero Hedge,Zerohedge,Finance,Economics,Markets,Politics,Analysis,Bond,Credit-Default Swaps,Creditors,Crude,default,Finance Industry,PDVSA
Date: 2013-01-07T00:00:00Z

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Trump - Or Any Other Politician With Power to Demand Answers - Need Only Ask the RIGHT QUESTION

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So maybe we slam COF together with Citigroup?

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“My bad,” she says. Cute.

# Venezuela Signs $3.2 Billion Debt Restructuring Deal With Russia

by Tyler Durden
Nov 15, 2017 11:12 AM
0
SHARES

As Venezuela teeters right on the brink of complete financial collapse, Bloomberg reports that Russia has agreed to restructure roughly $3.2 billion in outstanding obligations. While details of the restructuring agreement are scarce, both sides reported that the deal spreads payments out over 10 years with minimal cash service required over the next six years.

> Russia signed an agreement to restructure $3.15 billion of debt owed by Venezuela, throwing a lifeline to a crisis-wracked ally that’s struggling to repay creditors.

> The deal spreads the loan payments out over a decade, with “minimal” payments over the first six years, the Russian Finance Ministry said in a statement. The pact doesn’t cover obligations of state oil company Petroleos de Venezuela SA to its Russian counterpart Rosneft PJSC, however.

> “The terms are flexible and very favorable for our country,” Wilmar Castro Soteldo, Venezuela’s economic vice president, told reporters in Moscow after the signing. “We will be able to return to the level of commercial relations with Russia that we had before,” he added, noting that a deal to buy Russian wheat will be signed next week.

This is the second time Russia has agreed to reschedule Venezuela’s debt payments after agreeing to an extension last year. Still, Caracas failed to make payments amid an economic crisis triggered by low prices for oil. Rosneft has also provided several billion dollars in advance payments for Venezuelan crude supplies.

> The rescheduling pact is a “demonstration of the desire to maintain ties with the current Venezuelan leadership,” Viktor Kheifets, an expert in Venezuela at St. Petersburg State University, said by phone. “Russia isn’t happy with everything that the government there is doing but Venezuela is an ally where Russia has economic interests and Moscow is firmly against a forcible change of regime there.”

> In a website statement announcing the deal, Russia’s Finance Ministry said, “The debt relief provided to the republic from the restructuring of its liabilities will allow funds to be allocated for the country’s economic development, to improve the debtor’s solvency and increase the chances of all creditors to recoup loans granted earlier to Venezuela.”

Of course, the deal with Russia comes as attempts to hold talks with Venezuela's other creditors faltered this week. President Nicolas Maduro had summoned holders of some $60 billion of bonds issued by the government and PDVSA to begin a renegotiation as the nation’s cash crunch worsens, but as we noted previously (see: S&P Downgrades Venezuela To "Selective Default" After Bondholder Meeting Devolves Into Total Chaos), the meeting turned out to be nothing more than a photo op.

Meanwhile, as the Financial Times noted yesterday, failure of ISDA committees to determine whether or not a default event actually occurred when Venezuela blew through its grace period, has only added to the confusion of the restructuring process.

> A finance industry committee convened to discuss whether Venezuela’s state oil company has defaulted on its debts has elected to delay the decision once again, underscoring the uncertainly swirling around the country’s bond payments.

> Venezuela belatedly came through with a $1.1bn PDVSA bond payment last week, but only well after a three-day grace period following the bond’s maturity on Nov 3. That led to a request that the International Swaps and Derivatives Association’s “determinations committee” consider whether PDVSA was in default.

> The Isda committees have the power to declare a “failure to pay”, which would trigger insurance-like contracts on PDVSA’s bonds, known as credit-default swaps, even if the actual bondholders haven’t declared it a default. But in a statement on its website on Monday, Isda said that the committee had decided to reconvene on Tuesday at 11am to discuss the PDVA question further.

All of which has left bondholders in limbo...

- default
- Creditors
- Bond
- Credit-Default Swaps
- Crude
- Finance Industry
- PDVSA

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JibjeResearch Nov 15, 2017 11:15 AM

Russia consolidating the oil supply....

Two Theives and... JibjeResearch Nov 15, 2017 11:19 AM

^^This^^

Ghost of PartysOver Two Theives and a Liar Nov 15, 2017 11:36 AM

So Russia gets interest payments or oil infrastructure in case of default. Sounds like a GS deal to me. Venezuela just sold their soul to Russia and Russia gets a foothold in South America. Well played Putin.

ne-tiger Ghost of PartysOver Nov 15, 2017 11:42 AM

Nothing wrong for russian, just couple of billion wouldn't last.

bobcatz ne-tiger Nov 15, 2017 11:45 AM

Russia and China are ALL business. While the USSA is ALL warmongering for Israhell. http://wp.me/p4OZ4v-2g9

eclectic syncretist bobcatz Nov 15, 2017 12:01 PM

Wow!!! Fucking Wow!! For a few minutes of running the printing presses Russia gets a positive working relationship with the country controlling the largest proven energy reserves in the world, and also gets an internationally valid claim against said oil if things go south on their no-lose deal.

The real shocker is how it took so long for this to happen. That's where the real story is here.

https://en.wikipedia.org/wiki/Oil_reserves_in_Venezuela

When do we start hearing about the petro-ruble, to go along with the petro-yuan, gold-backed yuan ect......How's that dollar doing now you stupid motherfuckers in Congress?

JibjeResearch eclectic syncretist Nov 15, 2017 12:09 PM

We could have Venezuela's oil though peaceful mean...

but too many imbeciles in the Gov.

VZ58 JibjeResearch Nov 15, 2017 11:21 AM

Indeed. Putin knows what he is doing. can't say that about anyone in the West unless it is about helping Israel.

ne-tiger VZ58 Nov 15, 2017 11:47 AM

They know what to do to help Isreal

Salsa Verde JibjeResearch Nov 15, 2017 11:40 AM

The US attempted economic warfare with Russia and Putin responded by forming a new Russian Oil dynasty.

Wonder what the odds of them trading in Petrodollars is?

JRobby JibjeResearch Nov 15, 2017 12:02 PM

Just tack it on the back end. Keep the carbon flowing!

HRClinton JibjeResearch Nov 15, 2017 12:08 PM

Petro-Ruble + Gas Ruble. = Energy Ruble

Gold Ruble.

Energy Ruble + Gold Ruble = Check Mate

Clock Crasher Nov 15, 2017 11:15 AM

Jim Willie called it

HRClinton Clock Crasher Nov 15, 2017 12:08 PM

EVERYBODY called it.

YUNOSELL Nov 15, 2017 11:16 AM

Hopefully this means Venezuela can get their shit together now, and start feeding their people

Juggernaut x2 YUNOSELL Nov 15, 2017 11:21 AM

Russia will commence airlifting borscht and vodka to the Venezuelans

HRClinton Juggernaut x2 Nov 15, 2017 12:12 PM

Not airlifting. Shipping.

Next up: Russian Naval Port in Venezuela.

Sailors and V women are getting excited.

(USB song: "In the Navy... into Davey". Lulz)

GunnerySgtHartman YUNOSELL Nov 15, 2017 11:21 AM

Not likely, sir. This only puts off the inevitable. It would be interesting to know what Maduro whored out to Russia to get the restructuring.

VZ58 GunnerySgtHartman Nov 15, 2017 11:23 AM

Well sure - kinda like what Congress is doing right? Meanwhile another opportunity missed by the West and guranteed oil for Russia- soon to be paid in non-petrodollars.

GunnerySgtHartman VZ58 Nov 15, 2017 11:27 AM

I don't think that Maduro would be willing to deal with the US, at least - his ego won't let him do it. Other Western nations, perhaps ...

HenryHall GunnerySgtHartman Nov 15, 2017 11:36 AM

Not deal with the US?

Where do you think Venezuela gets refined product from?

GunnerySgtHartman HenryHall Nov 15, 2017 11:42 AM

We're dealing with Maduro here - common sense is not his strong point.

JibjeResearch GunnerySgtHartman Nov 15, 2017 12:11 PM

We missed a great opportunity... because of imbeciles in DC.

Son of Captain Nemo Nov 15, 2017 11:27 AM

I just saw something happen in Lugansk (https://southfront.org/lpr-leadership-clashes-national-security-team/) and "Raqqa"!!!

"Turkey on Wednesday condemned as “an extremely grave revelation” the potential escape of hundreds of extremists from the Syrian city of Raqqa. The US-backed Syrian Democratic Forces (SDF) said over 3,000 civilians had left Raqqa on October 14 as part of a deal negotiated between officials from the provisional Raqqa Civil Council and Islamic State (IS, formerly ISIS/ISIL) fighters, AFP reported. The US-led coalition later acknowledged that of these up to 300 were seen as ‘potential’ IS fighters. Ankara has long criticized Washington for working with and arming the Kurdish YPG as the main US ally in the fight against IS."...

What might you ask is the difference in these asymmetric act(s) of warfare?...

Only one of those sides has the "sound money"! Can you guess which of the party(s) "DOES NOT"?!!!

Tick... Tock... Tick... Tock..

Mike Masr Son of Captain Nemo Nov 15, 2017 11:36 AM

I would take what you read on southfront.org with skepticism and a grain of salt.

Poroshenko's very existance is under threat from his own neo-nazi banderists and he is desperately trying to divert attention away from his problems by escalating the attacks on innocent civilians in the Donbass. Read below how his Ukro-nazi forces attacked a school bus with 40 kids.

http://nrt24.ru/en/news/ukrainian-army-has-gone-totally-mad-school-bus-4...

Better to also keep an eye on these websites to get a more balanaced perspective.

Novorossiya Today

http://nrt24.ru/en

Fort Russ

http://www.fort-russ.com/

Son of Captain Nemo Mike Masr Nov 15, 2017 11:42 AM

M

I agree with everything you're saying but just look at the before and after of Ukraine circa 2014 and the level of desperation that still prevails in that Zionist contrived 'basket case".

If you had told me that Porko-Jew would still be the titular head in 2017 after what the U.S. has already done to it I probably would have laughed in your face outside of 1 year of that coup...

Well... That junta is still alive and well -isn't it!

HenryHall Mike Masr Nov 15, 2017 11:57 AM

Re: Lugansk and "return to Ukraine" Danego has said that his words were taken out of context and redistributed with intention of misleading.

See https://wins-go.livejournal.com/208977.html (google translate is good enough)

Danego's words would be better rendered as "Ukraine no longer exists".

HRClinton Son of Captain Nemo Nov 15, 2017 12:20 PM

For their sake, I hope that Turkey has finally figured out that all they ever were or will be, is a "Junior JV player" in the Anglo-Zionist sphere.

Their ONLY purpose was to stymie and contain the Soviets, and now the Russians. Cause that's what (((Bolshevik descendants))) and Rothschilds want.

Turkey is just an Asset, a bunch of turkeys to the A-Z Team.

GodSpeed_00 Nov 15, 2017 11:17 AM

Socialists will blow the money in no time.

Juggernaut x2 GodSpeed_00 Nov 15, 2017 11:24 AM

If you are from the US you really shouldn't talk shit about pissing away money.

Samuel Culper Juggernaut x2 Nov 15, 2017 11:26 AM

That's a dumb thing to suggest

Juggernaut x2 Samuel Culper Nov 15, 2017 11:29 AM

It's not a suggestion, just a fact.

Juggernaut x2 Samuel Culper Nov 15, 2017 11:30 AM

.

idahobandito Juggernaut x2 Nov 15, 2017 11:36 AM

Godspeed is correct....CONgress is FULL of Socialist pretending to be Republicans and Democrats.

idahobandito Juggernaut x2 Nov 15, 2017 11:46 AM

Now thats a rare statement I can agree with. You may add the whole world, not just the USA. Look at Norway, which is very rich, but they will piss it all away in a few decades and be just like the rest of us. Politicians need to be ...... as they are un accountable, and self serving.

Chupacabra-322 Juggernaut x2 Nov 15, 2017 11:56 AM

I don’t believe it’s “pissing” it away in as much as it is printing it away. Both one & the same. Just contradicted myself.

JibjeResearch Chupacabra-322 Nov 15, 2017 12:13 PM

It depends..

I like CTRL+P. I'm almost finish paying off my mortgage.. with all the free credit.

VZ58 GodSpeed_00 Nov 15, 2017 11:25 AM

Nobody cares what the socialists will actually do with it in VZ. It's about guaranteeing oil supplies for Russia and out manouvering the USA petrodollar. Is anyone paying attenetion?

JibjeResearch VZ58 Nov 15, 2017 12:14 PM

Too many imbeciles in DC...

Shameful...

Salsa Verde GodSpeed_00 Nov 15, 2017 11:36 AM

On capitalist luxury items.

pods Nov 15, 2017 11:20 AM

Oops, seems like that Star Wars guy, we squeezed too tight, and another star system slipped through our fingers.

Let's hope they can pull out of this nosedive.

I hate it that I am not sure if they are so fucked because of free shit (the common meme) or the fact we have been fucking around with them forever to try and gain control of their sale of oil.

CIA and friends need to be destroyed like a band of orcs, then we can see who is fucked by their own internal policies, and who was simply being fucked by Uncle Sam.

pods

LawsofPhysics pods Nov 15, 2017 11:22 AM

indeed, It really is hard to determine who has been socializing PRIVATE losses faster, China, Russia, or America?

nsurf9 Nov 15, 2017 11:20 AM

As bus driver says to self - good thing he's an ocean away.

VZ58 Nov 15, 2017 11:20 AM

Well, there is an example of the work of a true statesman and politician who is actually doing something with an opportunity and not just blustering! Geee, guaranteed oil supplies from Venezuela - soon to be denominated in anything but petrodollars. Another opportunity missed for the US who seems more interested in the next place to bomb.

LawsofPhysics Nov 15, 2017 11:20 AM

Awesome. Meet the new boss, same as the old boss.

serotonindumptruck Nov 15, 2017 11:22 AM

Putin plays 4D chess, while Washington DC plays Chutes and Ladders.

therover serotonindumptruck Nov 15, 2017 11:28 AM

Come on....they are playing Trouble. Pop a six and you move twice.

anonymike Nov 15, 2017 11:23 AM

Well played by GM Putin. While much of the other debt is defaulting, the debt to Russia is idling in the background with manageable payments for 6-years until the economic storm has passed. By then, Venezuela will have far less remaining debt, oil prices will be way up and good relations will have been maintained with a partner in destruction of the petrodollar.

Juggernaut x2 anonymike Nov 15, 2017 11:31 AM

The economic storm has been over us for awhile and shows no sign of abetting

Juggernaut x2 anonymike Nov 15, 2017 11:32 AM

.

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