(Adds details, opposition reaction)
CARACAS, Nov 3 (Reuters) - Venezuelan dollar-denominated eurobonds dropped nearly 10 points in price on Friday, with yields surging more than 8 percentage points after President Nicolas Maduro announced plans to restructure its external debt.
The country's $3 billion bond maturing in 2026 slumped 9.7 points, while its $4.2 billion 2031 bond also fell 9.7 points. Both bonds' yields surged to record levels of 39.4 percent and 37.9 percent, respectively.
Maduro said late Thursday that Venezuela's state oil company PDVSA would make this week's $1.1 billion payment on a maturing bond, but he also set up a commission to study the "restructuring" and "refinancing" of all future payments.
Venezuela has few avenues to do that, however, because of sanctions by the United States that bar U.S. banks from participating in or even negotiating such deals.
Maduro appointed Vice President Tareck El Aissami to head the commission, but he is on a U.S. blacklist as an alleged drug "kingpin," accused of facilitating trafficking and links to gangs in Mexico and Colombia.
Venezuelan Economy Minister Simon Zerpa, who also wears the hat of chief financial officer of PDVSA, is also under U.S. sanctions for alleged corruption.
Venezuela's opposition was scathing over Maduro's plans, saying his socialist government had no credibility abroad.
"Maduro won't be able to restructure the debt because nobody in the world trusts his government," said Julio Borges, head of the opposition-led congress, who has been campaigning hard to increase global pressure on Maduro. (Reporting by Andrew Cawthorne in Caracas, Christian Plumb and Daniel Burns in New York; Editing by Jeffrey Benkoe)