Venezuela gets US approval to hire advisers for debt restructuring talks
Updated
Updated · Bloomberg · May 5
Venezuela gets US approval to hire advisers for debt restructuring talks
10 articles · Updated · Bloomberg · May 5
The Treasury licence covers legal, financial advisory and consulting services for Caracas and state oil company PDVSA on roughly $60 billion of defaulted bonds.
It authorises work on assessing and preparing restructuring options, proposals and supporting materials, marking a significant step towards long-delayed negotiations with creditors.
Venezuelan bonds jumped after the move, which could help lay groundwork for a broader sovereign and PDVSA debt overhaul under US sanctions constraints.
Can Venezuela's debt plan succeed while its top foreign asset, Citgo, is being sold to pay other creditors?
Is the new US-Venezuela alliance a pragmatic path to stability or a risky bet on managed authoritarianism?
Is Venezuela’s economic recovery a true path to prosperity, or a boom benefiting only foreign investors and elites?
The Complex Road to Venezuela’s $150 Billion Debt Deal: Sanctions, Oil Control, and Creditor Conflicts
Overview
In early 2026, the U.S. captured former Venezuelan President Nicolás Maduro and Venezuela reformed its Hydrocarbons Law, prompting the U.S. to ease sanctions on Venezuela's oil and mining sectors through targeted licenses. This led to renewed international engagement, including Venezuela unlocking $5 billion in IMF funds and the removal of key sanctions, which boosted Venezuelan bond prices and restarted major oil projects. However, Venezuela faces a massive external debt burden exceeding $150 billion, complicated by fragmented creditors, weak bond terms, and U.S. control over oil revenues. These factors, combined with geopolitical tensions—especially involving China—and the slow recovery of oil production, make Venezuela's debt restructuring a complex and challenging process.