Venezuela’s Maduro Heads To China In Search Of Funding

The Daily Caller ^ | 09/13/2018 | Joseph Lafave

[Zhang Fei]

[Navy not required. All perfectly legal. Ownership would transfer to a Chinese corporation. No muss no fuss.]

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Any Venezuelan regime needs continual infusions of cash to pay off its supporters. The country’s oil resources are the source of that cash. That’s why nobody else wants to lend Venezuela money or invest there. You don’t take Venezuelan property on their own soil - they take yours.

[BJ1]

I’m reading the comments here and one other guy sees it the same way. China is about to buy Venezuela. It’s a rare country that is beholden to one thing, which is oil. It accounts for over 90% of Venezuela’s exports. However production is down over half as the country is so badly managed, they can’t even use common sense to funnel money back into the oil sector to maintain production.

So China will likely swap it’s debt for equaity in PVDSA. Which I saw elsewhwere was valued around $250. China will buy a 25% stake today and then another 25% later as Maduro will just keep pissing away any cash he gets from China.

[FrankR]

Haduro’s running out of other people’s money.

[granada]

“The country’s oil resources are the source of that cash.”

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True. So the regime change won’t lead to the deterioration of the relationship between Venezuela and oil buyer China.

[Zhang Fei]

[True. So the regime change won’t lead to the deterioration of the relationship between Venezuela and oil buyer China.]

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It will. Because the oil is pledged in repayment of the loans. A new regime needs fresh cash. Shipments of oil in payment for old debt doesn’t get the regime that cash. In fact, the best source of new cash would be the US, which imports roughly as much oil as China, and pays more for it because of lower transportation costs. Bottom line is that the new regime stops debt payments in the form of oil shipments to China, and starts selling to the US, or any other buyer willing to pony up fresh cash. Which gets China all riled up because it is looking at $50b in loan principal that just went up in smoke.

[WMarshal]

As if China doesn’t have enough holes to throw good money down. They’re busy propping up state industries to the tune of trillions of dollars and I don’t think that their largess is going to extend to the total basket case of Venezula.

[Bon mots]

Sanders still has that idiotic quote up on his senate.gov web page.

[BeauBo]

China loves desperate sellers, and corrupt Government officials - Maduro is both.

He will sell Venezuela’s crown jewels a penny on the dollar, to buy himself some time (and probably a personal escape plan).

[DeweyCA]

Can Maduro sell the port at Caracas (sp?) to China, like Sri Lanka sold a 99 year lease to its port to China? China would love to have one of two military bases so close to the US.