« I read Politico so you don’t have to | Main | The Drumpf rebound »

April 02, 2016

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Hi Noel: As always I'm looking forward to the continuation of your posts. Now, just to add early a potential question for later -- one of the concerns now is that the government will issue a lot of PDVSA bonds as an attempt to avoid default & avoid cutting back on imports. The issuance would be done similar to the old permuta system -- just give a dollar bond to a public bank and the public bank sells it in the market. Would that be more feasible than a loan against Citgo?

Short answer: yes! My understanding is that Venezuela is already doing to finance pharmaceutical imports and that the bonds are trading at heavy discounts; the Venezuelan press claims as high as two-thirds off face. I haven't talked to Francisco about that, but I think he puts those issuances under "net bonds sales." He doesn't think that they can raise much from them unless oil prices rise.

The comments to this entry are closed.

Categories