The Legitimate Government of the Bolivarian Republic of Venezuela informs that today, Friday October 16th, 2020, the District Court of New York in charge of Judge Katherine Polk Failla, issued a ruling on the lawsuit filed by the ad hoc Administrative Board of Petróleos de Venezuela S.A. (PDVSA) and its subsidiary PDV Holding Inc. (PDVH), questioning the validity of the transaction of the so-called PDVSA 2020 Bonds.
In view of this, we inform the public opinion that
1. This partial decision on the action of the ad hoc Administrative Board of PDVSA and PDVH is a direct consequence of the irresponsible debt policies of Nicolás Maduro’s regime and its mafia. Such decision is unjust and therefore, from the Legitimate Government we support the legal team appointed by the ad hoc Administrative Board of PDVSA in the performance of the necessary evaluations to consider all legal options, including the appeal.
2. We insist that the issuance of these PDVSA 2020 Bonds – putting as collateral the shares of PDVH, which is solely property of CITGO – is absolutely fraudulent, as ruled by the National Assembly on August 27th, 2016, through the approval of an agreement that clearly expresses that this condition of collateral is illegal in view of the fact that it was not approved by the National Parliament, as established by the Constitution of the Bolivarian Republic of Venezuela.
3. The nullity action before the District Court of New York against the PDVSA 2020 Bonds was the result of a complex evaluation process in which it was determined that this was the only option PDVSA had to protect CITGO’s assets, after negotiations with the holders failed a few days before the expiration of the principal and interest payment of nearly one billion dollars.
4. Since President (E) Juan Guaidó assumed the Interim Presidency of Venezuela in January 2019, we have achieved the protection of CITGO on all fronts irresponsibly opened by the dictatorship. In that sense, and despite the decision in the New York Court, CITGO continues to be protected since there is an Executive Order (GL5) from the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury that prevents the execution of any claim by the holders of the PDVSA 2020 Bond.
5. This protection provided by the U.S. Department of the Treasury was renewed in early October 2020 and will be maintained at least until January 19th, 2021, thus providing an adequate time frame to continue advancing CITGO’s procedural defense strategy.
6. The Legitimate Government continues to work with our allies, especially the United States Government, to ensure that protection is maintained and that progress is made toward the definitive preservation of CITGO for all Venezuelans. This has been stated repeatedly by the Department of the Treasury, the Department of Justice and the Department of State of the United States, especially in communications sent by Elliott Abrams, Special Representative of the United States for Venezuela.
7. Finally, we wish to recall that at no time have we sought to repudiate this debt or, in general, all other private claims against the State. The Interim Government of Guaidó has permanently expressed its intention that the Venezuelan State may comply with the obligations legitimately assumed with the endorsement of the National Assembly. To do so, there must be an organized evaluation and restructuring of debt or obligations contracted, together with the counterparts, which will be possible after a democratic transition. Unlike the corrupt dictatorship, we believe in the rule of law and justice.
In Caracas, on October 16th, 2020
— Centro de Comunicación Nacional (@Presidencia_VE) October 16, 2020