But Venezuela has already seized and nationalized foreign-owned assets. Surely that burnt plenty of bridges?
I'm more likely to believe that influential Venezuelans are exposed to the current bond market and are seeking to delay the reckoning.
I'm more likely to believe that influential Venezuelans are exposed to the current bond market and are seeking to delay the reckoning.
They seized/nationalized Exxon's assets, which certainly burnt that bridge (Exxon promptly filed for arbitration). But Exxon is only one foreign company.
Perhaps Venezuela sees a future of no foreign petroleum companies, but rather use foreign investments/loans to build their own internal petroleum operations. This seems likely after nationalizing the existing plants.
Many of the best left, knowing they could take positions with the supermajors or service contractors in other countries. PDVSA was left with a hodgepodge of lackeys and hacks who don't know what they're doing.
That problem is compounded by the fact that Venezuelan crude is a pain in the ass to deal with. Some of the nastiest on earth. Extremely heavy and sour (which is also why Venezuelan crude trades at a discount to the benchmarks).
Venezuela's future will depend on and require foreign investments and expertise.
Burning that bridge (or not burning it) is a calculated risk.
Well yes, but you seem to be assuming Maduro is rational on economic matters. But if that was so, the Venezuelan economy would not be in such a terrible mess.
It's starting to sound like you're one of the bond holders or securities tied to the bonds. Exxon is consistently in the top 10 on F500, and was an absolutely critical part of bloodline. Nationalization of Exxon was the an act of desperation, the last gasp, not "just one company". Having visited Venezuela, it is obvious there are huge problems with the state of affairs that no foreign investments are going to solve. (Edit:identation)
[0] - http://www.bloomberg.com/quicktake/venezuela-price-revolutio...
https://www.washingtonpost.com/opinions/global-opinions/hugo...