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Latin America
Related: About this forumCitigroup to sell Venezuelan gold in setback to President Maduro: sources
Source: Reuters
BUSINESS NEWS MARCH 20, 2019 / 3:04 PM / UPDATED 20 HOURS AGO
Citigroup to sell Venezuelan gold in setback to President Maduro: sources
Mayela Armas, Corina Pons
5 MIN READ
CARACAS (Reuters) - Citigroup Inc plans to sell several tons of gold placed as collateral by Venezuelas central bank on a $1.6 billion loan after the deadline for repurchasing them expired this month, sources said, a setback for President Nicolas Maduros efforts to hold onto the countrys fast-shrinking reserves.
Maduros government has since 2014 used financial operations known as gold swaps to use its international reserves to gain access to cash after a slump in oil revenues left it struggling to obtain hard currency.
In the past two years, however, it has struggled to recover its collateral.
Under the terms of the 2015 deal with Citigroups Citibank, Venezuela was due to repay $1.1 billion of the loan on March 11, according to four sources familiar with the situation. The remainder of the loan comes due next year.
Citibank plans to sell the gold held as a guarantee - which has a market value of roughly $1.358 billion - to recover the first tranche of the loan and will deposit the excess of roughly $258 million in a bank account in New York, two of the sources said.
-snip-
Citigroup to sell Venezuelan gold in setback to President Maduro: sources
Mayela Armas, Corina Pons
5 MIN READ
CARACAS (Reuters) - Citigroup Inc plans to sell several tons of gold placed as collateral by Venezuelas central bank on a $1.6 billion loan after the deadline for repurchasing them expired this month, sources said, a setback for President Nicolas Maduros efforts to hold onto the countrys fast-shrinking reserves.
Maduros government has since 2014 used financial operations known as gold swaps to use its international reserves to gain access to cash after a slump in oil revenues left it struggling to obtain hard currency.
In the past two years, however, it has struggled to recover its collateral.
Under the terms of the 2015 deal with Citigroups Citibank, Venezuela was due to repay $1.1 billion of the loan on March 11, according to four sources familiar with the situation. The remainder of the loan comes due next year.
Citibank plans to sell the gold held as a guarantee - which has a market value of roughly $1.358 billion - to recover the first tranche of the loan and will deposit the excess of roughly $258 million in a bank account in New York, two of the sources said.
-snip-
Read more: https://www.reuters.com/article/us-venezuela-politics-gold/citigroup-to-sell-venezuelan-gold-in-setback-to-president-maduro-sources-idUSKCN1R12GR
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Citigroup to sell Venezuelan gold in setback to President Maduro: sources (Original Post)
Eugene
Mar 2019
OP
Miguel M
(234 posts)1. Another turn of the thumbscrews.
MRubio
(285 posts)2. Golden thumbscrews at that.
Of course, there's much more where that came from. And what's a few thousand more hectares of Amazon jungle and its animals and indigenous peoples destroyed as long as no one intervenes?
Karadeniz
(22,474 posts)3. More salt on the wound.