Venezuela's unorthodox $5bn bond will not fix its funding shortfall
Caracas — Venezuela has issued $5bn in bonds maturing in 2036 to a state-owned bank, a source familiar with the situation said on Monday, in an unorthodox operation that does not immediately bring in new funds for the cash-strapped Opec nation. State-run Banco de Venezuela bought the dollar-denominated notes in local currency at a heavily subsidised exchange rate of 10 bolivars per dollar, according to the source, meaning there was no net increase in hard currency for state coffers. Struggling under triple-digit inflation, Soviet-style product shortages and low oil prices, the Opec nation needs hard currency to boost imports of food and medicine. The government of President Nicolas Maduro has struggled to borrow abroad because of investor concern that the country could default, which has made borrowing exceptionally expensive. Maduro says his government is the victim of an international financial blockade and blames the country’s problems on an "economic war" led by political advers...
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