Venezuela issue new dollar debt of 5 billion USD. The government bonds were emitted by the state bank on December 29, having coupon of 6.5% and maturing by 2036. The financial institution received the amount in local currency at exchange rate of 10 Bolivar per US dollar, which means that there was no net increase in hard currency for the Treasury.
Latin American country that suffers from a crisis, struggling with high inflation and shortages of products needs hard currency to boost imports of food and medicine.
The head of the country Nicolas Maduro considers that his government is a victim of international financial blockade and blames the problem on economic war led by political opponents.
The loan was guaranteed by the Chinese company Haitong Securities. This is the first such transaction for Venezuela since 2011. The official of the Ministry of Finance to coordinate issues of government bonds of the country.
Bond markets will likely react with “befuddlement” when they open back up on Tuesday after being closed on Monday for the New Year’s holiday. Taking place on Dec. 29 with no approval by the National Assembly and no promulgation notice in the Official Gazette, which smells of some kind of end of the year financial shenanigan from a government that is out of cash and is desperately trying to hide it.
more recommended stories
Lies, Damned Lies, and Statistics: Phil Gramm and Michael Solon Edition
The popular aphorism that is commonly.
No More Easy Choices: The Death of the Phillips Curve?
“An economist is someone that will.
Stanley Fischer Resigns from Federal Reserve
Stanley Fischer is retiring from the.
Australia Q2 GDP Growth at 1.8%, While Household Savings Declines
The Australian economy expanded by 1.8%.