Sunday 19 September 2021

Venezuela will not default in 2015, Says Expert

Paying the bills


Athleta women’s brand opened its first store outside North America in Costa Rica

QCOSTARICA - Gap Inc.'s Athleta brand announced the opening...

Carlos Alvarado: Vaccine retention ‘delays global solution and increases risk of new virus variables’

QCOSTARICA - Costa Rica President Carlos Alvarado showed his...

Top 8 Ways To Make Money in 2021

There are many legal ways to make money in...

Otto Guevara compares Daniel Salas with a dictator for sanitary measures

QCOSTARICA - The vehicle restriction of odds and evens...

Today’s Vehicle Restriction September 19: “EVEN” ending plates CANNOT circulate

QCOSTARICA - For today, September 19, vehicles with EVEN...

What are we celebrating?

QCOSTARICA - From the gallows humor department is the...
Paying the bills


The possibility of a dollar-based economy has been ruled out (Adolfo Acosta)
The possibility of a dollar-based economy has been ruled out (Adolfo Acosta)

(TODAY VENEZUELA) – “Venezuela does not look like defaulting in 2015,” said José Ignacio Guarino, a professor in the area of finances and securities market.

He explained that Venezuela has paid almost half of the outlays on account of principal and interest for debt maturity. “Bond 2015, which was for 1.3 billion euros, has been paid and, apparently, (state-run oil company) Pdvsa has saved between USD 2 billion and USD 6 billion. If so, officially, the coverage will be there to meet debt commitments this year,” Professor Guarino said.

- Advertisement -

Until 2019

The scholar said that from 2015 through 2019 the outlays on account of debt maturity amount to USD 52 billion.

“We have a very complicated economy, but there is still time to make the necessary corrections,” he stressed.

In his opinion, such corrections include the fact that the government should take on formal devaluation, with a fiscal impact. “I cannot settle 70% of imported goods at an exchange rate of VEB 6.30 per US dollar, when I have another exchange rate at VEB 200, because, at the end of the day, I will have fewer bolivars for the dollars that are not entering, which are fewer and fewer. All that we need to do is maximizing those dollars,” he elaborated.

Guarino recalled the proposal made in this regard by former Minister of Petroleum and Mining Rafael Ramírez to implement a dual exchange rate. To his mind, it is one of the options to correct economic distortions.

He also recommended disciplining public spending, although in an electoral year as this one it is expected to be high.

- Advertisement -

In his view, setting an exchange rate is rather complicated and, although the domestic economy is implicitly based on the US dollar at the black market exchange rate, he discourages the use of a foreign currency governing the Venezuelan economy. “We have a dollar-based economy to spend, but not in terms of income.”

As a whole, rather than a dollar-based economy, the expert suggested expanding the income of foreign currency. In addition, in the event of a dollar-based economy, the Central Bank of Venezuela could eventually lose its autonomy.

“There is much volatility in Venezuela, because (international) reserves change everyday; that is, they go down, whereas narrow money increases,” Guarino concluded.

Article originally appeared at

- Advertisement -

- Advertisement -
Paying the bills
Q24N is an aggregator of news for Latin America. Reports from Mexico to the tip of Chile and Caribbean are sourced for our readers to find all their Latin America news in one place.

Related Articles

Venezuela government, opposition return to talks in Mexico

Q24N - Delegations from the Venezuelan government and opposition resumed talks...

Latin America Sets an Example in Welcoming Displaced Venezuelans

Q REPORTS - CARACAS (IPS) - The exodus of more than...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.