Venezuela's opposition-led Congress approves extension of bond validity until 2028

A Venezuelan flag next to some flags of Venezuela's state oil company PDVSA is pictured near the company's headquarters, in Caracas, Venezuela March 20, 2023. REUTERS/Leonardo Fernandez Viloria/File photo

CARACAS (Reuters) - Venezuela's opposition-led National Assembly on Tuesday approved a proposal by committees overseeing the country's foreign assets to extend for five years the validity of billions of dollars in defaulted bonds issued by the government and state firm PDVSA.

The proposal opens the door to negotiations for debt repayment and restructuring, reducing the risks of additional legal actions in U.S. courts, where creditors have flocked to enforce awards related to expropriation cases and defaulted payments by Venezuela.