Credit Suisse Bans Trading of Some Venezuelan Bonds
August 11 2017 - 12:45AM
Dow Jones News
By Telis Demos
Credit Suisse Group AG will prohibit trading of certain
Venezuelan bonds, citing the country's political climate, according
to an internal bank memo.
The memo, whose contents were confirmed by a spokeswoman, was
written by the bank's reputational risk committee and sent earlier
this week.
The new policy forbids the trading or use as collateral of two
specific bonds, one issued by the Venezuelan government due in
2036, and one by state oil company Petróleos de Venezuela SA due in
2022, as well as bonds from government entities issued after June
1.
The bank doesn't trade those Venezuelan bonds currently, but
opted to formally ban them anyway.
The memo said the bank isn't leaving the Venezuelan market,
however. It will continue to support existing clients, onboard new
clients, and trade securities that meet its reputational risk
guidelines, the spokeswoman said.
The move comes several weeks after the asset-management business
of Goldman Sachs Group Inc. was criticized by opposition groups in
Venezuela. They said that the purchase of government bonds by funds
managed by the bank was supporting President Nicolás Maduro, who
has been the target of protests as the country suffers food and
medical shortages amid an economic crisis.
Write to Telis Demos at telis.demos@wsj.com
(END) Dow Jones Newswires
August 11, 2017 00:30 ET (04:30 GMT)
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