Empty cases and shelves in a grocery store in Cumaná, Venezuela, last year. Credit Meridith Kohut for The New York Times
Zero Hedge: Venezuela Headed For "Messiest Debt-Restructuring In History" Thanks To US Sanctions
After being effectively shut out from global financial markets – a situation that was made more precarious by US sanctions prohibiting purchases of Venezuelan debt (unless you’re buying them off Goldman Sachs, should the bank’s asset-management arm desire to liquidate its $3 billion “hunger bond” position) – Venezuela is drawing ever-nearer to what the Financial Times describes as potentially the “messiest debt restructuring in history.”
So far, Venezuela has managed to forestall a default by stripping assets from its state-owned oil company, Petroleos de Venezuela, commonly referred to as PVDSA, and shaking down local institutions of spare dollars – not to mention the explicit financial support of China and Russia. Recently, Rosneft, the largest Russian oil company, helped support its troubled ally, which enjoys the largest crude reserves in the world, by offering billions of dollars in advance payments for future crude supplies.
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WNU Editor: For Venezuelans, the government's ineptitude on its finances are forcing people to live like this .... In Venezuela, Cooking With Firewood as Currency Collapses (NYT).
Update: With the shutdown of Houston's refinery industry you would think that Venezuela's oil industry could benefit by stepping into this void. Unfortunately for Venezuela .... the opposite is happening .... Latin America Looks Toward Oil Cargo Sitting Offshore Venezuela (OilPrice.com).
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