From our new Boring-But-Important department:
Major lenders are now disagreeing on Venezuela’s ability to pay back what it owes.
Some see rising oil prices as the country’s escape hatch. Some see China coming to the rescue.
But others, especially Deutsche Bank, see default as inevitable.
Not paying your debts: Another page straight out of the Castro playbook. Why should the colony be any different from its colonizer? And why expect the puppet’s behavior to differ from that of the puppeteer?
From Bloomberg Business:
Venezuela Still Seen Defaulting in 2015 by Deutsche Bank
(Bloomberg) — With oil prices ticking up and new financing commitments, cash-strapped Venezuela is persuading traders and analysts alike to back away from calls the country will default this year.
But not everyone is buying it.
Deutsche Bank AG and Jefferies LLC still see Venezuela running out of money to pay debt in 2015. They’re the only ones out of 10 firms surveyed by Bloomberg, which included Goldman Sachs Group Inc. and Credit Suisse Group AG.
While the country has raised almost $5 billion in the past month and oil has jumped 21 percent from an almost six-year low, Deutsche Bank’s Armando Armenta says that’s still not enough. Venezuela needs $32 billion to finance itself this year, according to his estimates.
“The financing gap that they are facing for this year with current oil prices is just too large,” Armenta, the bank’s New York-based economist, said by telephone. “I don’t see a path out in which they can avert default.”
Continue reading HERE