No Drinking Water In Venezuela Until Bankers Get Paid Back

http://www.zerohedge.com/news/2014-06-09/no-drinking-water-venezuela-until-bankers-get-paid-back


No Drinking Water In Venezuela Until Bankers Get Paid Back




Submitted by Tyler Durden on 06/09/2014 22:38 -0400



2013 was a good year for Goldman Sachs investments in Emerging Markets, most notably Venezuelan bonds (as they bet on socialism and won). A year later and Goldman's EM debt portfolio is still loaded with Venezuelan bonds... and the arrears are mounting. As Bloomberg reports, at a time when Venezuela’s record $25 billion in arrears to importers has its citizens waiting hours in line to buy drinking water and crossing borders in search of medicine, President Nicolas Maduro is using the nation’s dwindling supply of dollars to enrich bondholders.



As Bloomberg reports,

Quote :

Venezuela, which imports just about everything, and its state oil producer have paid $2.8 billion in interest to overseas creditors this year, according to Barclays Plc. Including debt principal,bondholder outlays will balloon to almost $10 billion by year-end, the London-based firm estimates.
By putting off the local companies responsible for supplying everything from diapers to cancer medications, Maduro can preserve access to debt markets and protect oil shipments that would be vulnerable to bondholder seizure, said Alejandro Arreaza, an analyst at Barclays. Even if that means fanning the world’s fastest inflation and inflaming protests over shortages that have left at least 42 people dead since February.
“The government’s priority is to pay the sovereign debt,” Alejandro Arreaza, an analyst at Barclays Plc, said in a telephone interview from New York.

Of course, it's not just the government debt but state-owned entities that need the USD and are getting priority over the thirsty population...

Quote :

State oil company Petroleos de Venezuela SA is seeking a loan to pay off $3 billion of debt that matures this year and isn’t planning additional dollar bond sales in 2014, a company official said yesterday. PDVSA, as the Caracas-based company is known, is working to refinance an additional $11.9 billion of dollar debt due through 2017 to bring its annual maturities to no more than $3 billion, said the official, who asked not to be identified because he isn’t authorized to speak publicly.
 
“It’s the first time that it’s ever reached this critical level,” he said by telephone. “And it’s clear that they can’t pay it off at once.”
 
“There has been a divergence between what happens to Venezuelan bonds in the international market and what happens to businesses that operate inside of Venezuela,”

As one analysts noted... just like everywhere else in the world...

Quote :

“The market is giving Venezuela the benefit of the doubt and hopes that it applies other economic measures that in one form or another will guarantee its capacity to repay bondholders,”

Psalm 37
New King James Version (NKJV)
The Heritage of the Righteous and the Calamity of the Wicked A Psalm of David.
37 Do not fret because of evildoers,
Nor be envious of the workers of iniquity.
² For they shall soon be cut down like the grass,
And wither as the green herb.

³ Trust in the Lord, and do good;
Dwell in the land, and feed on His faithfulness.
⁴ Delight yourself also in the Lord,
And He shall give you the desires of your heart.

⁵ Commit your way to the Lord,
Trust also in Him,
And He shall bring it to pass.
⁶ He shall bring forth your righteousness as the light,
And your justice as the noonday.

⁷ Rest in the Lord, and wait patiently for Him;
Do not fret because of him who prospers in his way,
Because of the man who brings wicked schemes to pass.
⁸ Cease from anger, and forsake wrath;
Do not fret—it only causes harm.

⁹ For evildoers shall be cut off;
But those who wait on the Lord,
They shall inherit the earth.
¹⁰ For yet a little while and the wicked shall be no more;
Indeed, you will look carefully for his place,
But it shall be no more.
¹¹ But the meek shall inherit the earth,
And shall delight themselves in the abundance of peace.

¹² The wicked plots against the just,
And gnashes at him with his teeth.
¹³ The Lord laughs at him,
For He sees that his day is coming.
¹⁴ The wicked have drawn the sword
And have bent their bow,
To cast down the poor and needy,
To slay those who are of upright conduct.
¹⁵ Their sword shall enter their own heart,
And their bows shall be broken.

¹⁶ A little that a righteous man has
Is better than the riches of many wicked.
¹⁷ For the arms of the wicked shall be broken,
But the Lord upholds the righteous.

¹⁸ The Lord knows the days of the upright,
And their inheritance shall be forever.
¹⁹ They shall not be ashamed in the evil time,
And in the days of famine they shall be satisfied.
²⁰ But the wicked shall perish;
And the enemies of the Lord,
Like the splendor of the meadows, shall vanish.
Into smoke they shall vanish away.

²¹ The wicked borrows and does not repay,
But the righteous shows mercy and gives.
²² For those blessed by Him shall inherit the earth,
But those cursed by Him shall be cut off.

²³ The steps of a good man are ordered by the Lord,
And He delights in his way.
²⁴ Though he fall, he shall not be utterly cast down;
For the Lord upholds him with His hand.

²⁵ I have been young, and now am old;
Yet I have not seen the righteous forsaken,
Nor his descendants begging bread.
²⁶ He is ever merciful, and lends;
And his descendants are blessed.

²⁷ Depart from evil, and do good;
And dwell forevermore.
²⁸ For the Lord loves justice,
And does not forsake His saints;
They are preserved forever,
But the descendants of the wicked shall be cut off.
²⁹ The righteous shall inherit the land,
And dwell in it forever.

³⁰ The mouth of the righteous speaks wisdom,
And his tongue talks of justice.
³¹ The law of his God is in his heart;
None of his steps shall slide.

³² The wicked watches the righteous,
And seeks to slay him.
³³ The Lord will not leave him in his hand,
Nor condemn him when he is judged.

³⁴ Wait on the Lord,
And keep His way,
And He shall exalt you to inherit the land;
When the wicked are cut off, you shall see it.
³⁵ I have seen the wicked in great power,
And spreading himself like a native green tree.
³⁶ Yet he passed away,^[a] and behold, he was no more;
Indeed I sought him, but he could not be found.

³⁷ Mark the blameless man, and observe the upright;
For the future of that man is peace.
³⁸ But the transgressors shall be destroyed together;
The future of the wicked shall be cut off.

³⁹ But the salvation of the righteous is from the Lord;
He is their strength in the time of trouble.
⁴⁰ And the Lord shall help them and deliver them;
He shall deliver them from the wicked,
And save them,
Because they trust in Him.