Citigroup to Sell Venezuelan Gold After Maduro Fails to Repay Loan

Sparta Report | 3/22/2019 | Doomberg
loranseen (Posted by) Level 3
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Venezuela will lose access to even more of its gold, after failing to repay a loan given to them by Citigroup:

Citigroup Inc plans to sell several tons of gold placed as collateral by Venezuela’s central bank on a $1.6 billion loan after the deadline for repurchasing them expired this month, sources said, a setback for President Nicolas Maduro’s efforts to hold onto the country’s fast-shrinking reserves.

Maduro - Government - Operations - Gold - Swaps

Maduro’s 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.

Terms - Deal - Citigroup - Citibank - Venezuela

Under the terms of the 2015 deal with Citigroup’s 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 –...
(Excerpt) Read more at: Sparta Report
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