Being reported at CNN Money today:
Venezuela is shipping gold to pay its debts. Russia is selling a lot of gold:
Venezuela sent $1.3 billion worth of gold bars to Switzerland in
mid-January, according to data from the Swiss Federal Customs
Administration.
That gold was
shipped out just weeks before two big debt payments due this month,
totaling $2.3 billion. On Friday alone, Venezuela has to pay bondholders
$1.5 billion.
Venezuela is running out of cash and many experts believe there's a high chance it will default by this fall when a string of big debt payments are due.
"It's a question of when Venezuela will default, not if," says Russ
Dallen, managing partner at LatInvest, a firm that invests in Latin
America. "They're running out of options."
Actually, there is another option:
sell its oil reserves to Russia:
Russia's major oil company Rosneft has signed an agreement with
Venezuela's PDVSA for an additional investment of $500 million in the
development of the Orinoco oil belt project.
Maybe we've gone from "tic-tic-tic" to "tick-tock-tick-tock."
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