DEBT/FOREIGN POLICY/TRADE DEALS/VENEZUELA: “The U.S. on Friday [8-25-17] restricted the ability of Venezuela to tap American debt markets for funding, escalating Washington’s economic crackdown against Venezuelan President Nicolás Maduro’s cash-strapped government.
President Donald Trump’s executive order prohibits institutions in the U.S. from trading new bonds with Mr. Maduro’s government, including through the state-owned oil company, Petróleos de Venezuela SA. It doesn’t curb trading of existing Venezuelan bonds in secondary markets and allows short-term trade finance to facilitate oil transactions between Venezuela and the U.S.
The actions are aimed at severely limiting the government’s ability to finance itself, undermining Mr. Maduro’s legitimacy among domestic supporters and further estranging the leader within his own political circle.
The administration said it is ratcheting up the sanctions pressure on Venezuela to try to return the country back to democracy and penalizing the Maduro government for what it calls human rights abuses and state-led corruption…
The sanctions also ban the PdVSA and its refining company operating in the U.S., Citgo, from profit earned in the U.S. back to Venezuela. They do allow Citgo to continue raise new debt and the trade of Citgo bonds.”
-Ian Talley, “U.S. Curbs Venezuela’s Access to Debt, Toughening Sanctions,” The Wall Street Journal online, Aug. 25, 2017 12:27pm