The Executive branch published May 18 in the Official Gazette a regulation governing the stock market. The measure authorizes companies to issue debt securities in foreign currency using the public offering mechanism. The Venezuelan government is thus seeking to increase the participation of the private sector in the stock market. The regulation is already in force.
Companies may issue commercial papers, bonds and participation certificates in foreign currency, among others. The exchange rate to apply in the operations will be the one corresponding to the exchange tables of the foreign exchange system at the moment of the transaction, or the one agreed by the parties involved.
Foreign currency securities must be guaranteed in the same foreign currency or in bolivars at the corresponding exchange rate. Their value will be periodically adjusted in accordance with exchange rate variations. Finally, the application for permission to issue such securities must have a business plan attached, in order to underpin the objectives of the offer “with constant production levels, aimed at exporting”.