Venezuela bonds rise after new forex restrictions
(Adds context on measure, details on prices)
CARACAS, April 13 (Reuters) - Venezuela's global bonds jumped on Monday after the government passed a measure that restricts supply of hard currency for foreign travel, potentially improving the OPEC nation's capacity to pay debt amid concerns about a potential default.
A resolution published on Friday limits the amount of dollars that Venezuelans can receive at a preferential exchange when traveling abroad. One Wall St. analyst said that could save $2.8 billion in hard currency in 2015.
The benchmark Global 2027 bond was up 3.631 points to a price of 47.783 and a yield of 21.383 percent. The Global 2025 issue was up 3.350 points to a price of 40.690 and a yield of 23.053 percent.
"This could represent savings for the government of about USD2.8bn in FX allocations in 2015, a non-negligible amount that could provide needed relief for Venezuela's tight cash flows," wrote Alejandro Grisanti of Barclays in a research note.
The country's currency controls sell dollars to travelers at a rate of 12 bolivars, a fraction of the black market rate of nearly 260 bolivars.
Venezuelans have for years been able to buy cheap dollars and profit from reselling them at a higher rate, draining state coffers in the process.
The new regulations limit the maximum amount of dollars that travelers can spend on any given trip, with dollar allocations for trips to the United States dropping to $700 from $2,500.
It also requires that travelers spend their allowances of low-cost dollars via credit cards issued by state-run banks, creating a hurdle for those with accounts at private banks.
Low oil prices and a shrinking state-led economy have left investors worried that Venezuela may not be able to meet payments on foreign debt, leaving its bonds trading at levels usually associated with default.
President Nicolas Maduro dismisses default talk as a campaign by adversaries to tarnish his government's reputation and assures the country will meet all debt obligations.
(Reporting by Brian Ellsworth; Editing by Ted Botha)
