Discussion:
Venezuela running out of cash
(demasiado antiguo para responder)
JAT
2017-03-03 19:58:10 UTC
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Venezuela running out of cash

The Central Bank of Venezuela says the country is down to just $10.5 billion
in foreign reserves. At the same time, Caracas has to meet debt obligations
of $7.2 billion this year.

The country had nearly $30 billion in reserve five years ago. In 2015, it
was down to $20 billion. According to economists, the trend can't go on much
longer, but it's not easy to predict how long it would take Venezuela to
reach the bottom.

"The question is: Where is the floor? If oil prices stagnate and foreign
reserves reach zero, then the clock is going to start on a default," says
Siobhan Morden, head of Latin America fixed-income strategy at Nomura
Holdings, as quoted by CNN Money.

Nearly $7.7 billion of the country's remaining reserves is in gold,
according to the latest financial report for 2016. Venezuela had to ship
gold to Switzerland to foot debt bills last year.

Dwindling reserves are only exacerbating the humanitarian crisis in the
country. The economic blow has led to food and medical shortages, as well as
skyrocketing prices.

Inflation is expected to rise to 1,660 percent this year and 2,880 percent
in 2018, according to the IMF. Among the key factors boosting inflation
experts see the crashing bolivar, huge government spending, poor management
of the country's infrastructure, as well as high level of corruption.

https://www.rt.com/business/379160-venezuela-ten-billion-down-oil/
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JAT
Knowledge will set you free
El conocimiento te hará libre
PL
2017-03-04 18:22:29 UTC
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Post by JAT
experts see the crashing bolivar, huge government spending, poor management
No surprises here, no?
Chavez and MAduro have been bad managers. Chavez inept regime was hidden
by high oil proces allowing him to fool the uneducated. Maduro now
stands "nude before the people and they want him and his corrupt gang out.
While Venezuelans lack medicines and food Maduro sends billions to Cuba:
a crime against the Venezuelan people.

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