Venezuelan sovereign and PDVSA bonds have surged after the US Treasury authorised the country to hire specialist legal and financial advisers for a potential debt restructuring process. The move is seen as a significant step towards formal negotiations with creditors and marks a shift in Washington’s approach to Venezuela’s long-running financial isolation.
In secondary markets, Venezuela’s 2027 sovereign bonds rose more than 5% to around 55.5 cents on the dollar, their highest level in nine years. Meanwhile, PDVSA bonds due in 2037 climbed above 40 cents on the dollar. Investors interpreted the US licence as a signal that debt talks could finally become viable after years of sanctions and default.
Market optimism has also been supported by changing political expectations following the arrest of Nicolás Maduro and the appointment of Delcy Rodríguez as acting president. Analysts believe these developments may improve the prospects for renewed engagement with international institutions and creditors.
However, major challenges remain. Venezuela’s total external liabilities are estimated at between US$150 billion and US$170 billion, and ratings agency S&P Global said any successful restructuring would require credible economic reforms, stronger fiscal and monetary policies, and a meaningful recovery in oil production.
