Concern over Venezuela’s domestic debt
By Sol Maria Castro, veninvestor.com
Jane Eddy, managing director of sovereign debt ratings at Standard & Poor's, said the Venezuelan debt is growing up rapidly and it is being placed in short-term bonds, which has caused "concern about the country's capability to serve its debt in the future."
According to Eddy, Venezuela's domestic debt –Bs. 22 trillion ($137 billion)- is even more concerning than foreign debt, which represents $20 billion. Most debt bonds and Treasury bills issued by the Venezuelan government have been purchased by privately owned banks operating in Venezuela, which face excess liquidity in local currency amid stringent foreign currency curbs.
Meanwhile, Randal Keith Quarles, the U.S. Treasury Department's Assistant Secretary for International Affairs, said Venezuela is suffering the consequences of "moving away from general economic principles that have been important in the region."
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