James Alexander Michie: Deepening of the Venezuelan crisis | CBC News

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Venezuelan Crisis James Alexander Michie

To understand Venezuela's future, look to the bond market, not politics and protests

Author: James Alexander Michie

Venezuela is a nation that has been going through a crisis for a few years and that every day gets worse without giving any hope to its people, in fact, the future of the country looks dark.

The crisis is intensifying every time more, leaving as a consequence that millions of Venezuelans escape from it in search of a better future and stability, in the same way even though it is one of the countries with the largest oil reserves, hunger due to lack of food, thousands of deaths due to lack of medicines and lack of hygiene in hospitals and the constant power cuts of up to four hours a day in addition to crime are transformed as the protagonists of the nation, likewise inflation continues to increase to such an extent that The International Monetary Fund predicts that inflation could reach one million percent by the end of 2018.

In spite of everything that continues happening in Venezuela and in the same way it continues intensifying, there are no longer protests like last year where thousands of people took to the streets to express their discontent and that consequently they were attacked by the military forces and police forces in the country, we must add to this a somewhat incongruous and illogical fact and that the opposition parties of Venezuela instead of joining forces and fighting the government and all its measures, have done the opposite since the opposition is fractured to a level that had not been seen, in fact, it has weakened significantly during the last year.

According to Raúl Gallegos, who is an associate director of Control Risks, which is a security analysis firm based in Bogota, he has said that it is very unlikely that a political change will take place in the next 18 months, since the party led by Nicolas Maduro reinforces its control for the nation’s economy.

The Venezuelan government, in its attempt to combat what they have called an “economic war” that they blame for all the problems they are facing, likewise assures that they will pay all the existing debts, despite this, analysts believe that the measures The government’s economic benefits will not be sufficient and will not work, while similarly, they provide for the creditors to initiate additional legal action on the outstanding debt.

What is now a fact is that the courts of the United States and the Caribbean allow companies to owe money from the indebted state of Venezuela to seize oil abroad and speaking of debts it is necessary to speak with figures and it is that Venezuela must $ 65 billion in outstanding bonds, according to Caracas Capital, a financial advisory firm based in the capital of the country. This, of course, is not the only debt, in fact, it adds to other debts owed by the government and state companies: an estimated total of approximately $ 150 billion dollars.

Take a read: https://www.cbc.ca/news/world/venezuela-oil-debt-refugees-bonds-maduro-1.4807633

Source: Chris Arsenault | CBC News

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