This page updated regularly deals with securitization developments in Venezuela. If you have any news or development to contribute to this, please write to me.
State of the Market:
The Venezuelan economy has suffered severely during the devaluations of the bolivar in 1995 and 1996. Securitisation has been used by some entrepreneurs as a device to delink the exchange risk from their receivables particularly the foreign exchange receivables.
In 1994, Banco Union came with a credit card receivables securitisation. Banco Union continued with credit cards issuance in 1998.
In 1998, Petroleos de Venezuela S.A. launched one of the largest ever – close to $2 billion – Latin American issues backed by future oil receivables. The issue was rated 7 notches above the local currency rating.