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Significance

Maduro’s announcement followed amortisation payments of 842 million dollars on state oil company PDVSA’s 2020 bonds on October 27 and a further 1.2 billion-dollar tranche reportedly paid on November 2. The finance team has been reshuffled to facilitate negotiations with bondholders and investors. Adding to confusion about Venezuela’s intentions, the two key negotiators are under US sanction.

Impacts

Negotiations with -- and dependency on -- Russia and China will be increased.

Maduro will capitalise on ongoing efforts to isolate his government by once again articulating a popular anti-imperialist narrative.

In this context, disputes over mayoral elections once again make the opposition appear detached from national policy issues.

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