ISDA makes provision for Venezuela, PDVSA swaps after sanctions

New York, Oct. 11 – The International Swaps and Derivatives Association, Inc. announced an additional protocol for credit derivatives that reference Venezuela or Petroleos de Venezuela, SA, including emerging market credit default swap index transactions.

The organization said in a news release that the protocol is needed because U.S. sanctions imposed on Venezuela make it “impractical” to hold credit default swap auctions for debt covered by the restrictions.

The new terms will limit the scope of CDS contracts to debt obligations that are not restricted under the terms of the sanctions.

ISDA said the protocol is open for adherence from Oct. 11 to Oct. 18.

ISDA is a trade association for derivatives market participants based in New York.

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