Sanctions-defying Venezuela eyes reset with creditors

Sanctions-defying Venezuela eyes reset with creditors

Santiago, 18 January (Argus) — Venezuela's government is looking to reset relations with bondholders and other jilted creditors amid signs of a sanctions-defying economic recovery.

In recent months, the Venezuelan economy has turned a corner thanks to rising oil production and exports, de facto dollarization and remittances from a 6mn-strong diaspora, international economists say. Hyperinflation has been tamed and GDP this year could shrink by as little as 3pc or even not at all, a modest feat that is eclipsed by an accumulated contraction of more than 80pc since 2013.

The more stable short-term outlook is mostly felt in the commerce and services sectors of Caracas, where scores of Venezuelan officials targeted by US and EU sanctions have few other places to spend money. Fuel shortages and blackouts persist but they are less severe than they used to be.