Goldman under fire for buying Venezuela "hunger bonds"

Goldman Sachs Group Inc GS.N has confirmed it bought Venezuelan bonds after being excoriated by the country's opposition for financing the embattled government of President Nicolas Maduro, who is facing sustained protests.

"Given the unconstitutional nature of Nicolas Maduro's administration, its unwillingness to hold democratic elections and its systematic violation of human rights, I am dismayed that Goldman Sachs chose to enter this transaction".

"It is apparent Goldman Sachs chose to make a quick buck off the suffering of the Venezuelan people", Borges said in a letter sent to Goldman Sachs CEO Lloyd Blankfein.

Over the weekend, a report in the Wall Street Journal said that Goldman has paid 31 cents on the US dollar for the bonds issued by PDVSA the state owned oil company that mature during 2022 or approximately $865 million while citing five people that were familiar with the bonds' transaction.


The Wall Street Journal first reported Goldman Sachs' purchase from the Central Bank on Venezuela on Sunday. The transaction also comes as Venezuela's oil industry is crippled amid hyperinflation and a crisis so deep that people scramble to get food and medicine supplies.

Goldman's bond purchase is part of a strategy to increase positions in Venezuelan holdings, The Journal's sources said.

Borges said the Venezuelan Congress would open an investigation into the transaction and recommend to any future national governments that they refuse to "recognize or pay these bonds". A source at Goldman said the intermediaries were in Europe.

With Venezuela's inefficient state-led economic model struggling under lower oil prices, Maduro's unpopular government has become ever more dependent on financial deals or asset sales to bring in coveted foreign exchange.


Venezuela's National Assembly was to debate later on Tuesday whether to formally ask the U.S. Congress to investigate the Goldman deal, opposition representatives told Reuters.

The report claimed Goldman paid $0.31 on the dollar, or around $865 million, for bonds PDVSA issued in 2014 and mature in 2022.

The broker said he did not expect the bonds to trade unless Goldman chose to sell them.



Popular
  • South Korea Orders Probe into Extra, Undisclosed US THAAD Missile Launchers

    South Korea Orders Probe into Extra, Undisclosed US THAAD Missile Launchers

    Both the Defense Ministry and the Blue House said they couldn't immediately confirm the report. The THAAD system was installed in the southeastern town of Seongju.
    All you need to know about Judy Malware

    All you need to know about Judy Malware

    Some are free and some offer yearly subscription rates that sometimes include protection for multiple devices. The malware used infected devices to generate fraudulent clicks on advertisements for generating revenues.
    House narrowly passes American Health Care Act

    House narrowly passes American Health Care Act

    The CBO score will also include an estimate of whether the number of Americans with health insurance would change and by how much. House GOP leaders say the amendment prevents insurers from denying coverage to people with pre-existing conditions.
  • Trump tweets article with unnamed source after criticizing reports with unnamed sources

    There also are accusations from opposition Democrats that Trump has tried to obstruct justice and curtail the probes. And the search continues for an Federal Bureau of Investigation director to replace the fired James Comey .
    Veterans' graves to be marked with flag

    Veterans' graves to be marked with flag

    The parade will stop at the Nichols Memorial Library, the Town Docks and Lakeside Cemetery, across from the Congregational Church. In the 1930s, she asked the American Legion to take over organization of the parade and requested they keep the tradition alive.
    Jon Stewart & HBO Cancel Animated Series Plans

    Jon Stewart & HBO Cancel Animated Series Plans

    But the project proved to be fraught with technical issues and "too difficult" to execute, according to the premium cable network. The statement added that other projects with Stewart are in the works "which you will be hearing about in the near future".
  • Brush Fire In Brentwood Burns Within 200-Feet Of Homes, Firefighters Say

    Brush Fire In Brentwood Burns Within 200-Feet Of Homes, Firefighters Say

    LAFD crews responded at 11:30 a.m.to the fire, at 11200 Wheatland Ave., in Lopez Canyon, with the fire moving later to 11230 N. The Brentwood neighborhood near the fire is dense with estates belonging to major Hollywood players.
    LeBron struggles, exchanges words with fan after Game 3 loss

    LeBron struggles, exchanges words with fan after Game 3 loss

    Still, they beat the Cavaliers in Cleveland the next game before falling easily in Games 4 and 5. Thomas is set to play the last of his four-year, $27 million contract next season.

    Starwood Property Trust Inc (NYSE:STWD) Institutional Investors Quarterly Sentiment

    Perhaps, that suggests something about why 1.92% of the outstanding share supply is held by institutional investors. The stock of Vulcan Materials Company (NYSE:VMC) earned "Neutral" rating by DA Davidson on Monday, August 17.
  • Police Make 3 More Arrests In Connection With Deadly Manchester Concert Attack

    Ten people, including a 16-year-old boy, have been arrested by Greater Manchester Police in relation to Monday's terror attack. Police also raided and searched a property elsewhere in Manchester where Abedi's brother Ismail is thought to have lived.
    Jose Mourinho leads Manchester United to emotional Europa League victory

    Jose Mourinho leads Manchester United to emotional Europa League victory

    Manchester!" echoing around the stadium, United held on to win the only European trophy missing from the Old Trafford cabinet. Goals from Paul Pogba then Henrikh Mkhitaryan saw off their Dutch counterpart at the Friends Arena in Stockholm, Sweden.
    Korean officials meet in attempt to repair ties

    Korean officials meet in attempt to repair ties

    Moon in a phone call with Abe last week said that most Koreans can not accept the agreement. Shares in Amore Pacific, its largest cosmetics firm, were up 0.9%.

CONNECT