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WORLD NEWS Saturday 4 November 2017

Maduro moves to restructure Venezuela’s $120B foreign debt

By JORGE RUEDA itself forced to choose
JOSHUA GOODMAN between paying foreign
Associated Press creditors and helping a
CARACAS, Venezuela (AP) population ravaged by tri-
— Venezuela’s president ple-digit inflation and wide-
says his socialist govern- spread food and medicine
ment will begin restruc- shortages.
turing a foreign debt esti- Until now, Venezuela has
mated at more than $120 gone out of its way to
billion, saying U.S. financial honor its debts, finding
sanctions are crippling the new funds from ally Russia
oil-dependent economy’s and disproving critics who
ability to pay. long predicted a default.
But President Nicolas Mad- But financial sanctions an-
uro also indicated he want- nounced in August by the
ed to avoid a fight with Trump administration ban-
international lenders. He or- ning U.S. investors from
dered state-run oil compa- lending new funds to Ven-
ny PDVSA to make one last ezuela has made it harder
$1.1 billion bond payment to maintain the delicate
in full on Friday before the balance.
country launches its effort Many banks and financial
to ease future foreign pay- institutions now refuse to
ments. handle the government’s
“I decree a refinancing payments, for fear it could In this Oct. 17, 2017 photo, Venezuela’s President Nicolas Maduro speaks during a press confer-
and a restructuring of all damage their reputations. ence at the Miraflores presidential palace, in Caracas, Venezuela. Maduro said Thursday, Nov. 2
external debt and all of In May, Goldman Sachs 2017, that his socialist government will begin restructuring a foreign debt estimated at more than
Venezuela’s payments,” experienced a major $120 billion, saying U.S. financial sanctions are crippling the oil-dependent economy’s ability to
Maduro said in a nationally backlash after it made a pay.
broadcast address Thurs- big purchase of so-called (AP Photo/Ariana Cubillos)
day. “hunger bonds” from Ven- The president said Ven- Hugo Chavez, the govern- the nation sitting atop the
Venezuela’s economy has ezuela that paid a huge ezuela has paid $72 billion ment went on a borrowing world’s largest oil reserves.
contracted more than return but opened it up to to debt holders since he binge as oil prices that were But as oil prices have fallen,
35 percent since 2014, a accusations it was profiting came to power in 2013 de- around just $10 a barrel the few risk-seeking inves-
sharper fall than the U.S. from Venezuela’s misery. spite a precipitous fall in oil when he took office in 1999 tors willing to keep lending
suffered during the Great “We have had to face a income for the OPEC na- soared to over $140, giving to Venezuela have been
Depression, and Maduro’s real global financial perse- tion. investors confidence they demanding astronomically
government has found cution,” Maduro said. Under the late President would be paid back from high interest rates.q
Ex-Argentine Vice President detained on laundering charge

By A. CALATRAVA a gloomy Boudou in hand- December 2015, when he fice. In that case, Boudou is have been arrested in
Associated Press cuffs, wearing a bullet- ended his vice presidential accused of using shell com- a crackdown that has
BUENOS AIRES, Argentina proof vest and a black T- term,” it said. panies and middlemen to gained steam after Presi-
(AP) — Former Argentine shirt as he was being taken The warrant said Boudou gain control of a company dent Mauricio Macri’s co-
Vice President Amado Bou- away by the guards. The made intricate financial that was granted contracts alition recently won mid-
dou was arrested Friday on judge also ordered the ar- transactions, some of them to print the Argentine peso. term legislative elections.
corruption charges, joining rest of Boudou’s business involving bank accounts He has denied any wrong- Last month, Julio De Vido,
other members of the ad- partner, Jose Maria Nunez abroad, to shield money doing. an Argentine lawmaker
ministration of former Presi- Carmona. and its beneficiaries. It also Boudou’s attorney, Eduar- who was Fernandez’s plan-
dent Cristina Fernandez The arrest warrant said the said that Boudou laun- do Duranona, told report- ning minister, turned himself
who have been detained. charges include illicit asso- dered money by buying an ers that he was surprised by in to authorities after the
Boudou was arrested by ciation and money laun- apartment for his then-girl- the arrest and that his client lower house of Congress
coast guards in his apart- dering. “They developed friend, journalist Agustina never intended to flee. He voted to remove his immu-
ment located in an afflu- their criminal schemes Kampfer. also said Boudou wants to nity from being detained.
ent neighborhood of Bue- since the start of August The embattled former of- cooperate in the investiga- De Vido is being investigat-
nos Aires and was brought 2009, when Amado Bou- ficial is already on trial on tion. ed on suspicion of having
before federal Judge Ariel dou took charge of the charges of bribery and Boudou is the latest high- the government overpay
Lijo to be questioned. Local Economy and Finance conducting business in- profile official of Fernan- more than $7 billion for liq-
television channels showed Ministry, until the month of compatible with public of- dez’s administration to uefied gas. q