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Venezuela wins Russia and China backing as it says it is honoring debt

in AMERICAS/PRESS RELEASE/REGIONS by

Venezuela has ottenied easier debt terms from Russia and got a vote of confidence from China on Wednesday, as the oil-rich country said it had starting making interest payments on bonds after a delay that had threatened to trigger a default. A debt restructuring deal with Russia that allows Caracas to make “minimal” payments to Moscow in the next six years, together with a separate statement from the Chinese Foreign Ministry that Venezuela was capable of handing the debt issue “appropriately”. It was underlined that the reserve of support its socialist government enjoys of easy measures from both two countries. Venezuela has borrowed billions of dollars from Russia and China over the years, primarily through oil-for-loan deals. The two countries could provide a lifeline to Venezuela as it seeks to keep its deeply depressed economy solvent, even as U.S. and European sanctions target the government of President Nicolas Maduro.  On Wednesday, the Economy Ministry said it had started transferring $200 million in interest payments on those bonds, which mature in 2019 and 2024.

 

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