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Russia restructures Venezuela's $3bn debt | |
(35 minutes later) | |
Moscow and Caracas have signed an agreement to restructure the Latin American country’s $3 billion debt to Russia. The new schedule extends repayments for 10 years with minimal payments in the first six years, according to the Russian Finance Ministry. | Moscow and Caracas have signed an agreement to restructure the Latin American country’s $3 billion debt to Russia. The new schedule extends repayments for 10 years with minimal payments in the first six years, according to the Russian Finance Ministry. |
The debt relief will allow funds to be allocated to the development of the Venezuelan economy, improve its solvency and increase the chances of a return to creditors of all loans granted to the country, the ministry said. | The debt relief will allow funds to be allocated to the development of the Venezuelan economy, improve its solvency and increase the chances of a return to creditors of all loans granted to the country, the ministry said. |
In 2014, the Venezuelan authorities asked to extend the period of the loan given in 2011. In June 2015, Russia extended the deadline until the end of 2016. | In 2014, the Venezuelan authorities asked to extend the period of the loan given in 2011. In June 2015, Russia extended the deadline until the end of 2016. |
S&P Global Ratings announced on Tuesday that Venezuela was in selective default after not paying $200 million in overdue coupon payments on 2019 and 2024 global issues within a 30-day grace period. | S&P Global Ratings announced on Tuesday that Venezuela was in selective default after not paying $200 million in overdue coupon payments on 2019 and 2024 global issues within a 30-day grace period. |
“We would very likely consider any Venezuelan restructuring to be a distressed debt exchange and equivalent to default given the highly constrained external liquidity,” S&P said in the statement. | “We would very likely consider any Venezuelan restructuring to be a distressed debt exchange and equivalent to default given the highly constrained external liquidity,” S&P said in the statement. |
“In addition, in our opinion, US sanctions on Venezuela and government members will most likely result in a long and difficult negotiation with bondholders.” | “In addition, in our opinion, US sanctions on Venezuela and government members will most likely result in a long and difficult negotiation with bondholders.” |
Venezuela’s cash-strapped government said it had successfully begun efforts to refinance some $60 billion in bonds the country owes to creditors. | Venezuela’s cash-strapped government said it had successfully begun efforts to refinance some $60 billion in bonds the country owes to creditors. |
“The process of refinancing Venezuela’s foreign debt began with resounding success,” the government said on Monday, complaining that US sanctions are hindering the process of restructuring the debt. | “The process of refinancing Venezuela’s foreign debt began with resounding success,” the government said on Monday, complaining that US sanctions are hindering the process of restructuring the debt. |
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