Venezuela Follows Suit

Following Brazil’s announcement last week that it is planning to buy back $6.6 billion of outstanding Brady bonds, Venezuela has said it also plans to repurchase all its $3.9 outstanding of discount and par Brady bonds. The government said it will make a first buyback next month for $700 million and then complete the repurchase plan over the next few months, taking up the call option on the bonds. Venezuela is using rising foreign currency reserves, built up from booming oil exports, to reduce its foreign currency debt.