Thread: Socialist paradise, Venezuela, faces imminent bankruptcy

"Venezuela faces epic default as China and Russia pull the plug"

"Maduro said Venezuela had been strangled by a financial blockade and would seek to restructure over $140bn (£107bn) of external debt immediately..."
"The country no longer has any legal access to an IMF restructuring package, even if it were willing to accept the Fund’s draconian terms."

Venezuela faces epic default as China and Russia pull the plug

"Bondholders Get Trapped in Maduro's Web"




"The country has $37 billion equivalent of outstanding bonds. The state-owned oil company, Petroleos de Venezuela SA, known as PDVSA, has $43 billion. The overall exposure in other forms of unlisted debt will certainly be higher."

https://www.bloomberg.com/news/artic...s-just-chronic

"A petro-state goes bust"
"Venezuela asks its creditors to renegotiate its vast debt"

"Mr Maduro is trying to pin as much of the blame as possible on Donald Trump. He devoted much of his speech to denouncing “the global financial dictatorship of American imperialism”, and complained of a “genuine financial blockade”."

https://www.economist.com/news/ameri...venezuela-asks

Russia's Putin mulls financial aid for Venezuela
Oct 4, 2017

Russia says it may restructure Venezuela's debt payments as oil continues to flow between the two allies. Embattled Venezuelan leader Nicolas Maduro is due to meet his Russian counterpart amid an economic crisis at home.




Russian President Vladimir Putin's spokesman Dmitry Peskov on Wednesday said the two leaders would discuss the possibility of financial aid for the Venezuelan government when they meet later in the day.

"With regard to the Venezuelan-Russian talks, debt restructuring is, of course, one of the subjects of the negotiations ... no doubt it should be seriously discussed," Peskov told reporters, hours after Venezuela's leader Nicolas Maduro made similar comments.

Maduro spoke at an energy forum in the Russian capital and insisted that the Caracas government would meet all of its obligations despite worsening political and economic crises which have seen the Latin American country face international isolation.

Debts to Russia and China
As of 2016, Venezuela had $2.8 billion (2.37 billion euros) in outstanding loans to Moscow, which it has struggled to service due to a slump in oil prices which have left it on the edge of bankruptcy. The loans were granted five years earlier to finance the purchase of Russian arms including tanks and missiles.

Russia?s Putin mulls financial aid for Venezuela | Business | DW | 04.10.2017

Don’t Mention It! Russia Pardons $1 Billion of Venezuela’s Debt for 2017
Global Research, November 01, 2017

Russia will not demand Venezuela repay its owed debt in the amount of $ 1 billion for 2017 alone, said the head of Russia’s Minister of Finance Anton Siluanov.

Thus, Moscow continues to support Caracas and the Maduro led government. At the same time, there is no coherent reason to demand a return of the money from Venezuela, due to the severe economic and social crisis in the country, accompanied by a currency deficit, would not allow it to be payed off.

“Venezuela turned to us for debt restructuring. The terms of this restructuring were discussed. We have worked out the conditions with the Ministry of Finance in general. If the Venezuelan side can quickly initial these agreements, there is every reason to agree and sign the terms of the restructuring before the end of this year,” the minister said.

At present, the conditions under which the debt will be restructured have already been prepared, the agreement must be approved by the Venezuelan authorities.

This is the second restructuring of Venezuelan debt on the part of Russia over the past two years. Earlier, in September 2016, the debt was of $ 2.84 billion. This money Caracas should begin to return only in March 2019 in equal installments within three years.

Under the new restructuring, the conditions are likely to be similar, so payments will begin no earlier than 2020.

In total, over the past 11 years, Russia has invested $ 17 billion into Venezuela, including loans from Rosneft for $ 6 billion as an advance payment for the supply of Venezuelan oil.

Due to the fact that Russia will not receive funds from Venezuela, the Russian budget will be 54 billion rubles less than it could have been. The Commerce Chamber predicts that in the future, the amount of lost revenues will be greater, since it is “almost useless” to await the return of these funds from Caracas: according to the IMF, Venezuela annually requires up to $ 30 billion only to save the economy from collapse.

The economic situation remains very dire in Venezuela, inflation is expected to accelerate to 1660%, as well as the continued devaluation of the national currency and the growth of public debt. Venezuela currently has a 95% of economic collapse.

https://www.globalresearch.ca/dont-m...r-2017/5616172

Venezuela's Maduro says will shun U.S. dollar in favor of yuan, others
SEPTEMBER 8, 2017

CARACAS (Reuters) - Venezuelan President Nicolas Maduro said on Thursday his cash-strapped country would seek to “free” itself from the U.S. dollar next week, using the weakest of two official foreign exchange regimes and a basket of currencies.

https://www.reuters.com/article/us-v...-idUSKCN1BJ06O

The fearless leader,Maduro,makes old Bob Mugabe look like a rank amateur in the inflation and looting stakes.
Old Bob knocked off nearly all the diamond output but this anti=capitalist-freedom loving socialist champion of the working class and anti imperialist fighter against
US hegemony is bolting away in the stupid stakes.