US President Donald Trump has declared a national emergency to block courts and creditors from seizing Venezuelan government funds held by the United States of America. In an executive order, Mr Trump said the threat of attachment or the imposition of other judicial processes against Venezuelan government deposit funds would materially harm the national security and foreign policy of the United States. He added that such actions would interfere with the US efforts to promote economic and political stability in Venezuela. The executive order blocks any attachment, judgement, lien, garnishment or other judicial action against what it defines as Foreign Government Deposit Funds, unless specifically licensed or authorised by the administration.
The order specifies that the funds are derived from the sale of natural resources or the sale of diluents to the Venezuelan government. The executive order makes clear that the funds are considered sovereign property of Venezuela, not assets of private parties or judgement creditors. It also states that the US government holds the funds “solely in a custodial and governmental capacity, and not as a market participant.
