partlycloudy
Thursday August 17th, 2017 3:16PM

Credit Suisse bans trading of Venezuelan bonds

By The Associated Press

NEW YORK (AP) — Credit Suisse has banned the trading and use of Venezuelan bonds, as the political and financial crisis in the South American country escalates.

The bank will no longer trade, nor accept as collateral, two specific types of Venezuelan securities as well as any bonds the country issued from June 1 going forward, according to a company spokeswoman who was not authorized to give her name. Further, any businesses who wish to do business with Venezuela and deal in any assets there will have to go through additional screening.

The ban comes as the U.S. considers a range of economic sanctions against the government of President Nicolas Maduro, who is facing mounting international criticism over a crackdown on opponents and moves to consolidate power. In the memo, the bank cited "recent developments and the political climate" in the country for the ban.

The Trump administration has sanctioned 30 government officials or loyalists since April, including Maduro himself.

Venezuela in the midst of a severe economic downturn caused by poor government policies and low oil prices. The country's bonds are one of the few ways the current government is able to raise money to support its collapsing economy.

But as the country's political crisis has worsened, the bonds issued by the government as well as the state-owned oil company PDVSA have become a point of contention and concern for investors who increasingly worry they are supporting an oppressive regime as well as a country that is a great risk of defaulting on its debts. Goldman Sachs came under political pressure earlier this year for buying a reported $2.8 billion in Venezuelan bonds on the open market at a significant discount.

National Assembly President Julio Borges, leader of the country's opposition, has sent more than a dozen letters to leading global banks warning them of the risk to their reputations and bottom line if they throw a lifeline to Maduro. Borges also threatened not to recognize any bonds issued by Maduro's government if the opposition were to come back into power.

The country has debt payments coming due this year of around $6 billion and is estimated only to have $10 billion in cash remaining, largely tied up in gold bars.

The Trump administration has not ruled out the possibility of banning oil Venezuelan oil imports, a step that would deprive the country of its main source of hard currency and could hasten a debt default. Other options on the table include a ban on exports of light U.S. crude that Venezuela depends on to process its oil. That could also raise the risk of default by significantly reducing Venezuela's oil production.

____

AP reporter Joshua Goodman contributed to this report from Caracas.

  • Associated Categories: Associated Press (AP), AP World News, AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities
© Copyright 2017 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Taylor Swift doesn't sugar-coat testimony in groping case
A defiant and occasionally exasperated Taylor insisted during a whirlwind hour of testimony that a Denver DJ grabbed her bare backside and held on for a long time during a meet-and-greet before a concert
6:12PM ( 4 minutes ago )
Department stores _ except Nordstrom _ see sales metric drop
Macy's, which is trying to turn its business around, said Thursday that an important sales figure fell again in the latest quarter, its tenth straight quarter of sales declines.
6:08PM ( 7 minutes ago )
More video shows Penn State pledge stumbling before death
Additional video shot inside a Penn State fraternity house and played in court on Thursday shows a pledge stumbling and unsteady about three hours before he was found unconscious in the basement
5:50PM ( 25 minutes ago )
Associated Press (AP)
Trump administration urged to avoid salmon protection rules
Pro-industry environmental decisions by the Trump administration are giving hope to a group that represents farmers in the Pacific Northwest
5:31PM ( 45 minutes ago )
Snapchat's not-growing pains are a boom for Instagram
Snap Inc. should be very worried about Facebook's Instagram Stories, which now has more users than Snapchat itself
5:21PM ( 55 minutes ago )
Brushing off Putin, Trump says fewer diplomats saves money
President Donald Trump is brushing off Russian President Vladimir Putin's decision to expel hundreds of U.S. diplomatic employees from Russia
5:16PM ( 1 hour ago )
AP Business
Tech companies lead a broad slide in US stocks; oil slumps
Technology companies are leading a broad slide in U.S. stocks, a decline that has the market on pace for its biggest loss in two months
3:38PM ( 2 hours ago )
Tech companies leads broad slide in US stocks; oil slumps
Technology companies are leading a broad slide in U.S. stocks, a decline that has the market on pace for its biggest loss in two months
2:28PM ( 3 hours ago )
Tech companies lead broad slide in US stocks; oil rises
Technology companies are leading a broad slide in U.S. stocks in morning trading as investors pore over the latest batch of corporate earnings reports
11:21AM ( 6 hours ago )
AP Business - Financial Markets
Taylor Swift doesn't sugar-coat testimony in groping case
A defiant and occasionally exasperated Taylor insisted during a whirlwind hour of testimony that a Denver DJ grabbed her bare backside and held on for a long time during a meet-and-greet before a concert
6:12PM ( 4 minutes ago )
Department stores _ except Nordstrom _ see sales metric drop
Macy's, which is trying to turn its business around, said Thursday that an important sales figure fell again in the latest quarter, its tenth straight quarter of sales declines.
6:08PM ( 8 minutes ago )
More video shows Penn State pledge stumbling before death
Additional video shot inside a Penn State fraternity house and played in court on Thursday shows a pledge stumbling and unsteady about three hours before he was found unconscious in the basement
5:50PM ( 25 minutes ago )
The Latest: Supervisor denies that he groped Taylor Swift
A supervisor at a country music station denies a claim by former DJ David Mueller that the supervisor said he groped Taylor Swift at a meet-and-greet before a 2013 concert
5:50PM ( 26 minutes ago )
NCAA adopts sexual violence policy, emphasizing education
The NCAA board of governors has adopted a policy that requires yearly sexual violence education for all college athletes, coaches and athletics administrators
5:45PM ( 30 minutes ago )