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.
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.
Well, you know. Put the commies in charge and pay the price. Stupidity should be painful. And, as usual, in Venezuela it is.
But blame the evil bondholders. You Venezuelan something-for-nothing, free-lunch-gobbling idiots have no responsibility for your plight whatsoever, right?
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