‘Venezuela’s debts to China, Russia would be restructured’ | 2019-07-19

‘Venezuela’s debts to China, Russia would be restructured’

19 July, 2019 12:00 AM printer

GUAYAQUIL: Loans to Venezuela from President Nicolas Maduro's allies Russia and China would be renegotiated though the Paris Club if Maduro leaves power, an advisor to the opposition said on Wednesday, responding to concerns about favourable treatment for the two countries.

Ricardo Hausmann, who represents opposition leader Juan Guaido at the Inter-American Development Bank (IADB), said Guaido's team has not determined how loans might be restructured under its governance because bilateral debt talks typically take place under the auspices of the Paris Club creditor group, report agencies.

"It is not as if the chapter on bilateral debt says we are going to treat it differently. It is treated differently in international practice through the Paris Club," said Hausmann, a Harvard economics professor and former planning minister, at the IADB's annual meeting in Guayaquil, Ecuador.

"We have not come out with any specific guidelines on the treatment of bilateral debt for that reason."

Earlier this month, Guaido's advisers published a plan pledging equal treatment for creditors during an eventual restructuring process of Venezuela's US$200 billion in debt if Maduro leaves power. Maduro has overseen a collapse in the OPEC nation's economy.