Goldman Sachs underwrites Venezuelan tyranny
- Author: Jon Douglas Jun 06, 2017,
Jun 06, 2017, 5:28
PDVSA's $4 billion of notes due in 2027 gained 0.5 percent to 39.22 cents on the dollar as of 1:31 p.m.in NY, the highest level in four months.
The investment bank used the money to buy bonds in Venezuela's state-owned oil and gas company. "We agree that life there has to get better, and we made the investment in part because we believe it will", the Wall Street bank affirmed.
"By giving $900 million to a dictatorship, they are funding a systematic human rights violator, they are funding immorality and for Maduro to stay in power while he keeps killing people", said Eduardo Lugo, 23, a Venezuelan attending college in NY and a leader of the protest.
The text backs mediation efforts by many countries in the region and calls on the EU's High Representative for foreign policy to explore actively with worldwide and regional organisations "other measures that would enable the European Union to restore full democracy to Venezuela".
He has also drawn global condemnation for abuses of power and human rights violations.
"We are invested in PDVSA bonds because, like many in the asset management industry, we believe the situation in the country must improve over time", it said.
On Tuesday, Reuters reports, the National Assembly voted to request that the USA investigate the deal, and protesters gathered outside Goldman's headquarters in New York City.
"Today is an opportunity for us to demonstrate that this commitment remains alive and well relevant to the current plight of our Venezuelan neighbors", Shannon said.
Two months of protests against President Nicolas Maduro's socialist government have convulsed the South American OPEC nation, with around 60 people killed in the unrest.
Among the large holders of Pdvsa bonds are BlackRock, T. Rowe Price, Fidelity, JPMorgan Chase and Ashmore, an emerging market specialist based in London, the Times reported.
After making a bond purchase from the Venezuelan government, Wall Street investment bank Goldman Sachs has been accused of backing Venezuela's "dictatorial regime".
Lately, the opposition's ire has affixed to a new target, one outside Venezuela's borders: Goldman Sachs.
The government of President Nicolas Maduro has been under attack by OAS chief Luis Almagro, who has vocally backed Venezuela's opposition and promoted foreign intervention in the country, leading Caracas to begin the process of withdrawal from the worldwide body. Allies, which include fellow leftist nations and small Caribbean islands that receive cheap Venezuelan oil, defended Maduro during the OAS session, saying foreign powers were meddling in Venezuela's internal affairs.
The broker said he did not expect the bonds to trade unless Goldman chose to sell them.
In addition, the letter stated that the Venezuelan Congress will investigate the transaction and that Borges will recommend that the Venezuelan government not recognize or pay the bonds.
An emotional gathering of the Organization of American States ended with no consensus, other than an agreement to keep talking.
The ministers said they would reconvene about Venezuela before the June 19-21 General Assembly in Cancun, Mexico.
The Trump administration announced earlier this month sanctions against eight Venezuelan government officials on the nation's Supreme Court to support the Venezuelan people "in their efforts to protect and advance democratic governance".