Investors worried that Venezuela might
fail to repay a $1.5bn bond coming due on Friday have been reassured by the
sudden appearance of tonnes of Venezuelan gold worth almost that amount in
Switzerland. The government in Caracas has for years demonstrated its
determination to keep foreign bondholders happy even as its own people are
starved of basic goods from milk to medicines. A shipment of 35.8 tonnes of
gold registered by Swiss customs officials in January at a value of SFr1.27bn
($1.28bn) could surely have no other purpose than to keep that record intact? More…
Friday, February 26, 2016
Venezuela: the case for default
Investors worried that Venezuela might
fail to repay a $1.5bn bond coming due on Friday have been reassured by the
sudden appearance of tonnes of Venezuelan gold worth almost that amount in
Switzerland. The government in Caracas has for years demonstrated its
determination to keep foreign bondholders happy even as its own people are
starved of basic goods from milk to medicines. A shipment of 35.8 tonnes of
gold registered by Swiss customs officials in January at a value of SFr1.27bn
($1.28bn) could surely have no other purpose than to keep that record intact? More…
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