INSUBCONTINENT EXCLUSIVE:
Venezuela has approved the sale of government debt in the local market for the first time since 2019
and bonds worth up to 20,000 million bolivars ($437 million at the official rate)
These instruments may be in local or foreign currency.Local brokers will handle part of the issuance through the Caracas Stock Exchange
The finance ministry will determine how to place the remaining portion.This decision comes as government spending is increasing, especially
with upcoming Christmas-related payments
Expenses are projected to reach $1,200 million in December alone.For 2024, total expenditures are expected to hit $17,500 million, a 58%
increase from the previous year
(Photo Internet reproduction)The Maduro administration appears to have multiple goals with this debt sale
brokerage Kairos Valores, suggests the move aims to restrict liquidity and prevent further pressure on the foreign exchange market
The funds could also help meet year-end financial commitments.The gap between official and black market exchange rates has widened since the
July presidential elections, which Maduro claimed to win despite opposition evidence
Venezuelans have turned to dollars for financial security, further increasing this disparity.In response, the government has allowed the
official rate to depreciate, contributing to inflation
The government has defaulted on foreign bonds since 2017 and owes over $150 billion to foreign lenders.This return to local market borrowing
