Venezuela to complete buyback of bonds

[Judi Lynn]

Posted on Mon, Apr. 17, 2006
Venezuela to complete buyback of bonds
Associated Press

CARACAS, Venezuela - Venezuela plans to complete its buyback of $3.9 billion in bonds by the end of May as the world's fifth-largest exporter attempts to reduce its public debt amid high oil prices, officials said Monday.

Venezuela announced its plan to repurchase Brady bonds in late February as part of an aggressive strategy to ease its debt load.
(snip)

Earlier this month, the government said it had completed 75 percent of the planned buyback.

Venezuela is using its surging oil revenue to reduce its public debt. President Hugo Chavez says such debt often benefits rich creditors while saddling poorer countries with crippling interest payments.
(snip/...)

http://www.aberdeennews.com/mld/aberdeennews/business/14362748.htm

[gratuitous]

1. Yet another reason the oligarchs don't like Chavez

Instead of looting all of his country's oil revenue for himself and a select few, like any respectable dictator would do (see Riyadh, Brunei, and Washington DC for examples), Chavez is using his country's resources for the benefit of . . . the country. Unthinkable!

[EST]

2. A politician with a grasp of economic reality is a rare critter,

indeed!

[Finder]

3. He must have played Sim City. n/t

[Toots]

4. Pay off the Debt...What a Novel Idea...

:banghead: How UnAmerican of them....

[zann725]

6. Indeed! What a novel idea...if only others by example, learned...

n/t

[IndianaGreen]

8. A very Clintonian idea!

Another reason for Bush & Co to hate Chavez!

No profit for banks when there is no debt.

[Vidar]

5. Go Hugo!

[swatterdebattedelune]

7. buying back the debt is a smart trade

buying back the debt is the smartest move chavez has made. hard to argue with a guy who pays his debts. ain't argentina

[BrotherBuzz]

10. Argentina ain't?

Maybe it's one of those 'that was then, and this is now' kind of things, but it appears Venezuela and local investors are making a go of it. Maybe the World Bank's halcyon days or over in Argentina. Oh, I'm not saying Argentina is out of the woods by any means, but with friends like Hugo Chavez, Michelle Bachelet has a chance to make good.

 
Don't cry for Argentina

Published: April 18 2006 03:00


Argentina is back in the game after its disastrous fall from grace in 2001. In Latin America's current investment climate, where demand continues unabated in spite of growing political risk, it had no difficulty last month in making its first new bond issue direct to international investors since 2001 - for $500m. Another issue of $500m is expected soon.

Argentina has preferred to rely on Venezuela and local investors for its financing needs. This year it has borrowed $1.5bn at below market interest rates from Venezuela, which is flush with petro-dollars and eager to build its influence in the region.

Now Argentina is confident enough to look to borrow from further afield. "It was a very important move and really showed for the first time that the government is ready to issue at market prices, the same as everyone else," said Miguel Kiguel, a finance secretary in the 1990s, who points out that international investors accounted for more than80 per cent of demand of the recent issue.

<more>

http://news.ft.com/cms/s/a7bb9422-ce77-11da-a032-0000779e2340.html

Welcome to DU :hi:

[roody]

13. Michelle es presidenta de Chile.

[BrotherBuzz]

14. Jeez Louise A brain FART for sure! LOL

Nevertheless the rest of the post is still good...Right?

[MisterP]

15. Nestor Kirchner is the Argentinian President

after interim Duhalde (and others) and neolib de la Rua and Menem, who basically made Buenos Aires burn down in 2001

[Zynx]

9. That's a good idea because long term interest payments will be a

lot lower and that will make fiscal maneuvering a lot easier even if and when oil prices drop.

[sleipnir]

11. Can we hire this guy to manage our debt?

Oh, wait, he might actually even out the money mountain to better serve all Americans.

[cantstandbush]

12. Can we hire this guy to be our President? n/t

[1932]

16. Kevin Phillips's American Theocracy: America's carrying too much debt

both at the national and the individual level, which is one of the US's three huge problems. Another is that too many people, including politicians either believe the rapture is coming, or are exploiting people who believe that, or both. He says this actually compounds the debt problem (people are spending like they don't believe there is going to be a tomorrow). The third problem is the politics of oil.

[Judi Lynn]

17. Concerning the second problem you mentioned, I'd like to suggest

it appears to me that politicians see the wildly emotional, reactionary fundie/right-wingdings as easily manageable, easily inflamed, enraged, outraged, thirsty for revenge/blood, willfully gullible, unimaginative, alienated and seeking powerful authority figures, cheaply, foolishly sentimental, shallow, and almost always predictable. They are truly putty in the hands of propagandists. They cooperate in their own delusion with wild abandon. They love hating an "enemy." They adore externalizing. The thought of magical salvation arranged by a right-wing leader, from a new threat is exalted.

Consider how it took only what seemed a few days, if that many, after 9/ll, and the instant announcement the demons were Mid-eastern before someone raced out into the night and killed someone he thought was an "A-rab," even though the man was from India. The mindless suspicion and hatred of NEW ENEMIES within the country has continued steadily.

God knows what any of these easily provoked and easily pacified right-wingdings really thinks. It's a good bet they don't think, or they wouldn't be so quick to burst into flames of blazing hatred any time they are told they have a new enemy. If they don't think, they'll never be capable of self-control, of wisdom, of insight, and they'll never know they've been had before they reach the end of their lives.

ASSHO#ES!

[chopper]

18. like him or hate him

its a pragmatic idea. venezuela has discovered a vast amount of oil reserves, and despite this there's still going to be some trouble in the world when the rest starts to run low. a country like venezuela will become a prime target for imperialist countries bent on staying on top at all cost.

paying off public debt is going to be chavez's first step.