“Given that nonpayment would be an event of default, we believe Venezuela will ultimately back down,” the report said.
By Corina Rodriguez Pons
(Updates with Chavez comments in second paragraph.)
Jan. 27 (Bloomberg) -- Venezuelan President Hugo Chavez said he won’t accept any rulings from the World Bank’s International Centre for Settlement of Investment Disputes, or ICSID, as they are contrary to the South American country’s constitution.
“Any decision taken at the ICSID comes up against the Venezuelan constitution,” Chavez said in comments broadcast on state television. ”As an independent country, we won´t accept that.”
Venezuela’s government officially requested to leave the Washington-based International Centre for Settlement of Investment Disputes, or ICSID, Jan. 25 after being a member since 1993. The court is currently considering about 20 suits filed by companies against Venezuela.
Venezuela´s intention is to disavow any obligation to pay future ICSID awards on arbitration regarding currently pending cases by saying all of them were nullified by the current constitution, Bank of America analysts Francisco Rodriguez and Jane Brauer said today in an e-mailed report.
“Given that nonpayment would be an event of default, we believe Venezuela will ultimately back down,” the report said.
Chavez said today he already feels free from the ICSID, while adding he understands the process to leave the arbitration court will take six months.
“Even after a denunciation of the ICSID Convention by Venezuela takes effect, claimants can still come forward and file ICSID claims because Venezuela is a signatory to more than 20 bilateral investment treaties consenting to arbitration,” said Michael Nolan, a partner in the Washington office of Milbank, Tweed, Hadley & McCloy, in an e-mail.
Chavez also denied a report in Madrid-based ABC newspaper saying he may have as little as nine months to live.
“There are some Spanish media telling the world that I’m dying,” Chavez said. “I am more alive than ever. They say that I injected painkillers. It is pure speculation.”
will continue building his highway to hell
