Venezuela looks to sell Jamaica’s Petrocaribe oil debt

Socialist Venezuela would never sell out its friends to Wall Street, right? Yet it appears that is exactly what Caracas wants to do. Pressed by the oil price collapse, rattled by fears of default, facing rising social tension as imports collapse due to lack of foreign exchange, and seemingly unable to put its economic house in order, the country is trying to raise desperately-needed cash by selling debts owed to it by the Dominican Republic and Jamaica on to Goldman Sachs. Chavismo turns to the vampire squid?

In this case, that reportedly means selling the $4bn owed by the Dominican Republic for $1.75bn to Goldman Sachs. The DR will then issue fresh bonds, and with the proceeds buy the debt off Goldman. The US investment bank is also reportedly holding conversations about doing the same for Jamaica’s Petrocaribe debts. Along with Nicaragua, these two countries account for $10bn of the total $14.5bn owed to Venezuela under the 13-country program that, in the past, has bought Caracas valuable support in fora such as the United Nations and the Organisation of American States. But not for much longer, it seems.

This is bad news for Jamaica


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