"Quite optimistic": the head of BlackRock assessed the prospects for investment in Venezuela

Larry Fink, CEO of BlackRock, one of the world's largest investment firms, expressed optimism about investing in Venezuela after the political changes following the ouster of President Nicolas Maduro, Bloomberg writes.

"I'm really quite optimistic about the investment opportunities in Venezuela," Fink said at a panel discussion in New York on Ma. 11. The oil-rich country can be "returned to its former greatness," he said.

Latin America as a whole is emerging from a prolonged period of "lost time" accompanied by frequent political fluctuations, Fink said. Rapidly growing demand for AI infrastructure could also benefit economies with significant solar and hydrocarbon capacity, he added.

"Demand is growing faster than supply. This could be a strong growth driver for Brazil and many other countries," Fink said.

The Bovespa index of Brazilian equities closed down 1.2% in trading on Ma 11 (but added 13% YTD). Chile's broad stock market IGPA declined 0.4% (+2.5% since January), while the Mexico IPC index, which tracks the performance of 33 major companies, added 0.6% (+9.1% YTD).

Stock markets in Brazil, Chile and Mexico are near record highs. Investors attribute this to the relative protection of the region from geopolitical tensions, as well as the high share of companies benefiting from the growth in demand for raw materials and critical minerals related to the development of AI, notes Bloomberg.

Investors are actively investing in Venezuelan assets after Maduro's ouster by the administration of U.S. President Donald Trump in January, writes . The market expects that the political reset will open the way to negotiations on debt restructuring, notes Bloomberg.

Last week, U.S. authorities allowed Venezuela to hire consultants for potential debt negotiations, a major step toward a long-awaited restructuring of the country's nearly $60 billion in defaulted bonds, reports said.

Mobius Emerging Opportunities Fund managing director Mark Mobius, who died in April, was also planning a return to Venezuela after the change of government. Mobius invested in the country while at Franklin Templeton, but left the market after Hugo Chavez came to power. After the ouster of Nicolas Maduro, investors should look to Venezuela again, the businessman wrote, noting that hyperinflation and currency devaluation led to a surge in the local stock market.

This article was AI-translated and verified by a human editor