Juan Guaido’s Team Signals It May Default on PDVSA Bond Backed by Citgo
- The 2020 notes are the only Venezuelan bonds not in default
- Trump executive order seen shielding Citgo shares from seizure
Juan Guaido
Photographer: Carlos Becerra/BloombergThis article is for subscribers only.
The team advising Venezuelan National Assembly President Juan Guaido signaled Tuesday that it may stop making payments on the nation’s only bond not currently in default.
Advisers to Guaido, recognized by the U.S. and more than 50 countries as Venezuela’s interim president, say a Trump administration executive order Monday protects Venezuelan assets in the U.S., including Citgo Holding. That would prevent holders of Petroleos de Venezuela’s 2020 notes from foreclosing on their collateral -- 50.1% of Citgo Holding shares -- in the event of a default, according to Jose Ignacio Hernandez, Guaido’s attorney general.