MercoPress, en Español

Montevideo, August 12th 2022 - 15:47 UTC

 

 

Loans from Russia and China to Venezuela will be renegotiated through the Paris Club, says Guaidó

Friday, July 19th 2019 - 09:55 UTC
Full article 6 comments
“It is treated differently in international practice through the Paris Club,” said Hausmann, a Harvard economics professor and former planning minister “It is treated differently in international practice through the Paris Club,” said Hausmann, a Harvard economics professor and former planning minister

Loans to Venezuela from President Nicolas Maduro's allies Russia and China would be renegotiated through the Paris Club if Maduro leaves power, an advisor to the opposition said, responding to concerns about favorable treatment for the two countries.

Ricardo Hausmann, who represents opposition leader Juan Guaido at the Inter-American Development Bank (IADB), said Guaido's team has not determined how loans might be restructured under its governance because bilateral debt talks typically take place under the auspices of the Paris Club creditor group.

“It is not as if the chapter on bilateral debt says we are going to treat it differently. It is treated differently in international practice through the Paris Club,” said Hausmann, a Harvard economics professor and former planning minister, at the IADB's annual meeting in Guayaquil, Ecuador.

“We have not come out with any specific guidelines on the treatment of bilateral debt for that reason.”

Earlier this month, Guaido's advisers published a plan pledging equal treatment for creditors during an eventual restructuring process of Venezuela's US$200 billion in debt if Maduro leaves power. Maduro has overseen a collapse in the OPEC nation's economy.

The document carved out some exceptions, including for the billions of dollars in loans from Russia and China, which drew criticism from a group of bondholders known as the Venezuela Creditors Committee, who said the “burden” should be shared equally between public and private creditors.

Guaido, who heads the opposition-controlled National Assembly, in January invoked the constitution to assume an interim presidency and challenge Maduro to step down, arguing his 2018 re-election was illegitimate.

Most Western countries and some multilateral organizations, including the IADB, recognize him as Venezuela's rightful leader.

But Maduro, who calls Guaido a US-backed puppet seeking to oust him in a coup, has retained control of the military and state institutions. China, Russia and Cuba continue to recognize him as president.

 

Top Comments

Disclaimer & comment rules
  • :o))

    Russia and China are in charge of Venezuela. So let them pay!

    Jul 20th, 2019 - 04:45 pm +1
  • Marquita

    So, who's aware that Guaidó' and his team is fully paid for by the US government? The funds for the “team” is taken from foreign aid funds meant for Central America. So each dollar paid to these parasites is a dollar less that goes to some Guatemalan child. This is our tax dollars these mafioso are stealing. It must stop!

    Jul 19th, 2019 - 12:39 pm 0
  • Heisenbergcontext

    Ironically, both Russia and the PRC are much more likely to receive at least some return on their investments from the opposition.

    Jul 20th, 2019 - 04:46 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!