By Kellys Kaunda
VENEZUALA OWES OVER 150BILLION DOLLARS TO VARIOUS CREDITORS – NO WONDER THE WORLD IS CAUTIOUS IN ITS RESPONSE TO THE US INVASION
In a complex web of debts – commercial bonds, arbitration claims, and oil-based loans/sovereign loans, behind the scenes a race is underway to untangle the web and restructure the debt.
Since the economic sanctions of 2019, Venezuela has been in a debt limbo.
But the US capture of Maduro has, ironically, given renewed hope in the investor and creditor community that perhaps the Trump Administration could provide a solution to the uncertain economic situation thus unlocking that country’s ability to service its debts.
It is hoped that US oil companies may be encouraged to go in and invest thus unlocking the potential economic resources that could enable Caracas meet her debt obligations.
But the political uncertainty may hold them back.
If you think the Chinese government would do anything rush, think again – there is over 13 billion dollars at stake that Venezuala owes her!
And Beijing, prioritizing money over politics, wants to collect what she is owed.
While the IMF often plays a pivotal role in debt restructuring, instead, analysts see the US playing a key role in this regard.
Perhaps this explains why the Trump Administration is talking more of access to Venezuelan oil resources than the drugs that were used as a pretext to snatch Maduro.
Whether the interim President will play ball remains to be seen.
Perhaps she should, after all, it’s not her Uncle Sam has beef with but her former boss.
If she doesn’t, who knows what the unhinged Trump could do next?