2023-05-19 00:25:11
There was a danger that creditors would claim that money and thus settle the debts.
Archive | The fund will be administered by the UN to attend public services
The United States government guaranteed the United Nations (UN) that contributions to its humanitarian fund for Venezuela will not be seized by creditors.
The measure might be applied this month, according to Bloomberg sources.
This decision by the Joe Biden government might once once more boost the dialogue between the government of Nicolás Maduro and representatives of the Venezuelan opposition, in the vicinity of a presidential election.
The United States is willing to work with banks that hold Venezuelan assets, some of which will feed into the fund, to ensure their safe transfer and prevent it from being vulnerable to lenders seeking debt repayment.
In 2017, Venezuela defaulted on a debt of US$60 billion and currently owes billions of dollars in commercial loans and arbitration awards.
That has caused creditors to date to focus on assets frozen outside the national territory due to US sanctions.
The country’s top offshore asset, Citgo Petroleum, is at high risk as creditors such as Crystallex and oil giant ConocoPhillips pressure courts to force the sale of its parent company’s shares so they can collect arbitration awards for the expropriation of its assets in Venezuela.
In 2022, US President Joe Biden told the UN that he might not guarantee the funds would be safe from creditors.
Nonetheless, the UN remained committed to efforts to put the deal into effect.
This has been one of the sticking points for the opposition and the government to sit down once more to negotiate, since the money has not been delivered.
The fund will be administered by the UN and has the purpose of addressing the social issue, as well as improving the infrastructure in education, health centers, among others.
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