Venezuela's National Assembly Threatens to Not Pay $2.8 Billion in Bonds

The leader of Venezuela's National Assembly has threatened that a later government may refuse to pay $2.8 billion in bonds that Goldman Sachs GS recently purchased.
Author:
Publish date:

The leader of Venezuela's National Assembly has threatened that a later government may refuse to pay $2.8 billion in bonds that Goldman Sachs (GS) - Get Report recently purchased from the country's central bank, CNBC reported.

"It is apparent Goldman Sachs decided to make a quick buck off the suffering of the Venezuelan people," Julio Borges, the leader of the opposition-controlled congress, said in a letter dated on Monday to Goldman Sachs CEO Lloyd Blankfein.

"Given the irregular nature of this transaction and the absurd financial terms involved that are to the detriment of Venezuela and its people, the National Assembly will soon launch an investigation into the matter. I also intend to recommend to any future democratic government of Venezuela not to recognize or pay on these bonds," Borges wrote.

Goldman Sachs bought about $2.8 billion in Venezuelan bonds that had been held by the oil-rich country's central bank, a lifeline to President Nicolás Maduro's embattled government as it scrambles to raise funds in the midst of widening civil unrest, The Wall Street Journal reported last week.

Borges said the deal offered a "financial lifeline" to Maduro's regime, which has been accused of using violence against frequent protests, CNBC reported.

This article was written by a staff member of TheStreet.