-- The US has extended restrictions tied to a key Venezuelan bond, delaying creditors' ability to pursue collateral linked to the country's overseas assets, the Treasury Department said on Monday.
The Treasury's Office of Foreign Assets Control said it had issued General License 5W, which authorizes certain transactions related to Venezuela's PdVSA 2020 bond only from June 19, prolonging a freeze on enforcement actions tied to the debt.
The agency said transactions involving the sale or transfer of shares pledged as collateral, notably those tied to US-based refiner Citgo Petroleum, remain prohibited until June 19 unless approved by OFAC.
The previous license, issued in March and continuing a series of extensions dating back to 2019, was set to expire May 5.
Though the new license ultimately allows transactions related to the bond after June 19, it does not override other sanctions restrictions, meaning additional approvals may still be required.
OFAC said that if creditors and Venezuela reach agreements to restructure or refinance the PdVSA 2020 bond, parties may need to seek specific licenses, adding that it would adopt a favorable licensing policy toward such arrangements.
Elsewhere, the US has in recent months eased some restrictions on Venezuela's energy sector, allowing limited business with PdVSA even as core financial sanctions remain in place.