New York/Houston: The U.S. involvement in Venezuela’s oil sector offers a potential opportunity for international banks, with JPMorgan Chase in an advantageous spot due to its history in the country and past involvement with international trade financing.
A clutch of banks including JPMorgan and Citigroup have historically operated in the country, but reduced operations or pulled out in the last few decades. U.S. banks now, however, may have the potential to compete for opportunities in trade financing or financing investment in oil infrastructure, one source familiar with the situation said. Venezuela is under an interim government after the and analysts stressed there would still be significant challenges to doing business.
Among the banks, JPMorgan could have an edge in the country, where it has had a presence for 60 years. While JPM curtailed its banking and stock trading operation in 2002, it kept a dormant office in Caracas for many years, according to a second source familiar with the matter, adding that it could be reactivated as needed.
