The US Treasury Department’s Office of Foreign Assets Control (OFAC) issued General License 5AA, extending partial protection until December 18, 2026, for Citgo shares pledged as collateral for PDVSA 2020 bonds carrying an 8.5% interest rate. The document replaces the previous General License 5Z and temporarily prevents bondholders from foreclosing on the collateral: the shares may be sold or transferred only with separate OFAC authorization.
The US agency said it is prepared to review and approve specific licenses for debt refinancing or restructuring agreements. However, the current measure applies only to the shares pledged against these bonds: it does not protect all Citgo assets, halt other creditor lawsuits against Venezuela, or authorize transactions prohibited under current sanctions.
Full story: US extends protection for Citgo shares linked to PDVSA 2020 bonds until December 18