Government says the measure seeks financing access and economic recovery amid sanctions-related constraints.

The Venezuelan government has begun a sovereign debt restructuring process aimed at restoring access to financing and supporting economic recovery after years of sanctions-related restrictions, Economy and Finance Vice President Calixto Ortega said on Thursday.

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Ortega, who also serves as Venezuela’s representative before the International Monetary Fund, said the initiative is intended to help the country secure funds and reactivate the national economy after sanctions imposed in 2017 prevented Venezuela from meeting its financial obligations.

He described the restructuring as a sovereign decision adopted in response to what he called “one of the most destructive sanctions” imposed on the country in August 2017.

According to Ortega, the restructuring would allow Venezuela to obtain financing and resources needed to strengthen public services while also opening new lines of credit for the private sector, which he said could contribute to broader economic growth.

The official stated that the process began months ago with the formation of technical teams responsible for carrying out the corresponding studies.

Ortega said the strategy is based on the principles of transparency, comprehensiveness, sustainability and speed, with the objective of ensuring an efficient process that does not compromise social investment.

“This is possible today because the Venezuelan economy is being managed responsibly,” Ortega said.

He also stated that Venezuela is currently experiencing a period of economic recovery, which he described as creating favorable conditions for the restructuring measures.

On May 13, the Venezuelan government formally launched what it described as a comprehensive and orderly restructuring process for the country’s external public debt and that of state oil company Petróleos de Venezuela S.A..

A statement released by the Ministry of Economy and Finance said the measure seeks to place the economy “at the service of the people” and reduce the financial burden accumulated by the country in order to guarantee prosperity, justice and equality.

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