Venezuela’s Exchange Controls – How to recover monies owed by the Government of Venezuela

Since 2003, Venezuela has maintained strict controls on the exchange of the local currency (bolívares) into hard currency. As a result, companies doing business in Venezuela are finding their revenue earned in the country to be stranded there and unable to be repatriated, leaving them in arrears with overseas vendors and creditors. 

While oil prices keep falling and the Venezuela economy worsens, the government has adopted measures reportedly intended to allow companies to repatriate their funds. However, such measures appear uncertain and risk causing a substantial devaluation of Venezuela’s local currency. Depending on how companies have structured their investments into Venezuela, they may be able to use international investment agreements (IIAs) to seek a negotiated solution or pursue international arbitration against Venezuela to recover their funds.

On Wednesday, March 11, 2015 at 11:00 am Eastern, attorneys from Crowell & Moring and AraqueReyna will discuss the current situation in Venezuela and the possible legal remedies for foreign investors. 

Topics will include:

• Venezuela’s exchange controls regime
• New “Marginal Currencies System” (SIMADI), and other measures and legal instruments recently adopted by the Venezuelan Government
• Legal protections for foreign investors provided in IIAs signed by Venezuela
• Potential recovery mechanisms for foreign investors under IIAs, and implications of pursuing international arbitration against Venezuela

Presenters include members of Crowell & Moring’s International Dispute Resolution team based in Washington, D.C., and AraqueReyna’s Corporate and Alternative Dispute Resolution teams based in Caracas, Venezuela. We hope you can join us for this webinar.