BREAKING NEWS

Venezuela's dollar bonds rise this Friday after the International Monetary Fund's decision to resume contact with authorities in Caracas boosted investor sentiment towards the country's defaulted debt. By Bloomberg Most IMF members backed the resumption of contacts on Thursday, the organization said in a statement. The decision, which comes just over a month after the United States recognized the authority of interim president Delcy Rodríguez, paves the way for Venezuela to regain access to key financing and resources to rebuild its troubled economy. “We celebrate this decision by IMF member countries as an important step in Venezuela’s economic stabilization and recovery,” Treasury Secretary Scott Bessent wrote Friday on X. “The @USTreasury looks forward to Venezuela working with the IMF on policies that benefit all Venezuelans.” Sovereign bonds maturing in 2027 rose as much as 1 cent on Friday to trade above 53 cents on the dollar, holding at their highest levels since mid-2017, according to indicative data compiled by Bloomberg. Securities issued by state oil company Petróleos de Venezuela S.A. also advanced, with the 2026 bond reaching its highest level in almost a decade. The country's debt has posted some of the biggest gains among emerging markets this year following the capture of leader Nicolás Maduro by US forces in early January. The interim government led by Rodríguez has cooperated with the Donald Trump administration to boost investment in the energy sector and revive the local economy. The rapprochement between the two countries has reinforced expectations of a long-awaited debt restructuring, currently blocked by US sanctions. But the resumption of contacts with the IMF could open a new front of uncertainty for investors. The organization has not conducted its usual annual review of the country's economy—known as the Article IV consultation—since 2004. “The IMF could project an economic reality substantially worse than what market prices reflect,” said David Austerweil, an emerging markets portfolio manager at VanEck in New York. “The lack of updated audited data has allowed the market to price in an optimistic scenario in terms of haircut and exit yield. We continue to believe it is an attractive investment opportunity, but prices have outrun our short-term scenarios.”