Venezuela’s Petro Caribe is looking to Wall Street for rescue
another $3.6 billion a year – still far short of the $25 billion a year in fresh external finance that Bank of America estimates the country needs to maintain imports even at the current depressed levels. For the debtor countries, the Dominican Republic and especially Jamaica are already struggling under hefty debt loads and, although any such arrangement would effectively discount the principal amounts now owed to Venezuela, the replacement bonds would require immediate servicing. Meanwhile, Venezuela’s already dire economic straits are likely to get a whole lot worse if the latest forecasts of a continued slump in crude oil prices are borne out.
Is Venezuela selling out to the mighty Goldman Sachs?