Tag Archives: Maduro

‘Migrate or die’: Venezuelan migrants flood into Colombia despite crackdown

Venezuelans line the street at the border between Venezuela and Colombia, in Cucuta, Colombia February 21, 2018. REUTERS/Carlos Eduardo Ramirez

By Julia Symmes Cobb and Anggy Polanco

MAICAO/CUCUTA, Colombia (Reuters) – The desert wind whipping their faces, hundreds of Venezuelan migrants lugging heavy suitcases and overstuffed backpacks trudge along the road to the Colombian border town of Maicao beneath the blazing sun.

The broken line snakes back 8 miles (13 km) to the border crossing at Paraguachon, where more than a hundred Venezuelans wait in the heat outside the migration office.

Money changers sit at tables stacked with wads of Venezuelan currency, made nearly worthless by hyperinflation under President Nicolas Maduro’s socialist government.

The remote outpost on the arid La Guajira peninsula on Colombia’s Caribbean coast marks a frontline in Latin America’s worst humanitarian crisis.

Venezuelans pray as they gather at a dining facility organised by Caritas and the Catholic church, in Cucuta, Colombia February 21, 2018. REUTERS/Carlos Eduardo Ramirez

Venezuelans pray as they gather at a dining facility organised by Caritas and the Catholic church, in Cucuta, Colombia February 21, 2018. REUTERS/Carlos Eduardo Ramirez

The Venezuelans arrive hungry, thirsty and tired, often unsure where they will spend the night, but relieved to have escaped the calamitous situation in their homeland.

They are among more than half a million Venezuelans who have fled to Colombia, many illegally, hoping to escape grinding poverty, rising violence and shortages of food and medicine in their once-prosperous, oil exporting nation.

“It’s migrate and give it a try or die of hunger there. Those are the only two options,” said Yeraldine Murillo, 27, who left her six-year-old son behind in the Venezuelan city of Maracaibo, some 56 miles (90 km) across the border.

“There, people eat from the trash. Here, people are happy just to eat,” said Murillo, who hopes to find work in Colombia’s capital Bogota and send for her son.

The exodus from Venezuela – on a scale echoing the departure of Myanmar’s Rohingya people to Bangladesh – is stirring alarm in Colombia. A weary migration official said as many as 2,000 Venezuelans enter Colombia legally through Paraguachon each day, up from around 1,200 late last year.

Under pressure from overcrowded frontier towns such as Maicao, Colombian President Juan Manuel Santos announced a tightening of border controls this month, deploying 3,000 additional security personnel.

But the measures are unlikely to stem the flow of illegal migrants pouring across the 1,379-mile (2,219 km) frontier.

At Paraguachon, where a lack of effective border controls has long allowed smuggling to thrive, officials estimate 4,000 people cross illegally daily.

“We left houses, cars. We left everything: money in the bank,” said former electronics salesman Rudy Ferrer, 51, who sleeps outside a warehouse in Maicao. He estimates there are 1,000 Venezuelans sleeping on the town’s streets every night.

‘THE MADURO DIET’

Some 3 million Venezuelans – or a tenth of the population – have left Venezuelan since late Venezuelan leader Hugo Chavez started his Socialist revolution in 1999.

Despite four months of violent anti-government protests last year, Chavez’s hand-picked successor Maduro is expected to win a fresh six-year term at elections on April 22. The opposition, whose most popular leaders have been banned from running, is boycotting the vote.

Mechanic Luis Arellano and his children were among the lucky ones who found beds at a shelter in Maicao run by the Catholic diocese with help from the U.N. refugee agency. The 58-year-old said his children’s tears of hunger drove him to flee Venezuela.

“It was 8 p.m. and they were asking for lunch and dinner and I had nothing to give them,” he said, spooning rice into his 7-year-old daughter’s mouth.

Children from Venezuela eat a meal at a dining facility organised by Caritas and the Catholic church, in Cucuta, Colombia February 21, 2018. REUTERS/Carlos Eduardo Ramirez

Children from Venezuela eat a meal at a dining facility organised by Caritas and the Catholic church, in Cucuta, Colombia February 21, 2018. REUTERS/Carlos Eduardo Ramirez

“This isn’t the size they should be,” Arellano said, raising his children’s spindly arms.

Migrants told Reuters they were paying up to 400,000 bolivars for a kilo of rice in Venezuela. The official monthly minimum wage is 248,510 bolivares – around $8 at the official exchange rate, or $1.09 on the black market.

Food shortages, which many migrants jokingly refer to as the “Maduro diet”, have left people noticeably thinner than in photos taken years earlier for their identification cards.

The shelter – where bunk beds line the walls of the bedrooms – provides food and shelter for three days and, for those joining family already in Colombia, a bus ticket onwards.

It will soon have capacity for 140 people a night – a fraction of the daily arrivals.

Colombia is letting the migrants access public health care and send their children to state schools. Santos is asking for international help to foot the bill, which the government has said runs to tens of millions of dollars.

‘NO WORK’ FOR VENEZUELANS

At another shelter in the border city of Cucuta, some 250 miles (400 km) to the south, people regularly spend the night on cardboard outside, hoping places will free up.

The largest city along the frontier, Cucuta has borne the brunt of the arriving migrants. About 30,000 people cross the pedestrian bridge that connects the city with Venezuela on daily entry passes to shop for food.

Conditions are desperate for migrants like Jose Molina, a 48-year-old butcher unable to find work after leaving his wife and son in Venezuela’s northern Carabobo state four months ago.

People sit on a makeshift bed, on a street, where Venezuelan migrants gather to spend the night, in Maicao, Colombia February 15, 2018. REUTERS/Jaime Saldarriaga

People sit on a makeshift bed, on a street, where Venezuelan migrants gather to spend the night, in Maicao, Colombia February 15, 2018. REUTERS/Jaime Saldarriaga

“I feel so depressed,” said Molina, his face puffed and tired after sleeping outside a church. “I got sick from eating rotten potatoes but I was hungry so I had to eat them.”

Molina is so hopeless he has considered returning home.

“My wife says everything’s getting worse and it’s best to wait,” he said. “I don’t want to be a burden to them. They don’t have enough to eat themselves.”

While many feel a duty to welcome the migrants, in part because Venezuela accepted Colombian refugees during that country’s long civil war, others fear losing jobs to Venezuelans being paid under the table.

After locals held a small anti-Venezuelan protest last month, police evicted 200 migrants who were living on a sports field, deporting many of them.

Migrants are verbally abused by some Colombians who refuse them work when they hear their accents, said Flavio Gouguella, 28, from Carabobo.

“Are you a Veneco? Then no work,” he said, using a derogatory term for Venezuelans.

In Maicao, locals also worry about an increase in crime and support police efforts to clear parks and sidewalks.

They already have to cope with smuggled subsidized Venezuelan goods damaging local commerce, and have grown tired of job-seekers and lending their bathrooms to migrants.

Spooked by police raids, migrants in Maicao have abandoned the parks and bus stations where they had makeshift camps, opting to sleep outside shuttered shops. Female migrants who spoke to Reuters said were often solicited for sex.

Despairing of finding work, some entrepreneurial migrants turn the nearly-worthless bolivar currency into crafts, weaving handbags from the bills and selling them in Maicao’s park.

A man sells bags made out of Venezuelan banknotes, in Maicao, Colombia February 16, 2018. Picture taken February 16, 2018. REUTERS/Jaime Saldarriaga

A man sells bags made out of Venezuelan banknotes, in Maicao, Colombia February 16, 2018. Picture taken February 16, 2018. REUTERS/Jaime Saldarriaga

“This was made from 80,000 bolivars,” said 23-year-old Anthony Morillo, holding up a square purse featuring bills with the face of South America’s 19th century liberation hero Simon Bolivar. “It’s not worth half a bag of rice.”

($1 = 28,927.5000 bolivar)

(Reporting by Julia Symmes Cobb in Maicao and Paraguachon and Anggy Polanco in Cucuta and La Parada; Writing by Julia Symmes Cobb; Editing by Helen Murphy, Daniel Flynn and Daniel Wallis)

With medicine running out, Venezuelans with transplants live in fear

Lismar Castellanos, 21, who lost her transplanted kidney, cries while she speaks on the phone with a relative during her birthday celebration at a state hospital in Caracas, Venezuela February 7, 2018. Castellanos lost her transplanted kidney last year and is struggling to get the dialysis needed to keep her body functioning. REUTERS/Carlos Garcia Rawlins

By Alexandra Ulmer

CARACAS (Reuters) – Yasmira Castano felt she had a fresh chance at life when she received a kidney transplant almost two decades ago. The young Venezuelan was able to finish high school and went on to work as a manicurist.

But late last year, Castano, now 40, was unable to find the drugs needed to keep her body from rejecting the organ, as Venezuela’s healthcare system slid deeper into crisis following years of economic turmoil.

On Christmas Eve, weak and frail, Castano was rushed to a crumbling state hospital in Venezuela’s teeming capital, Caracas. Her immune system had attacked the foreign organ and she lost her kidney shortly afterwards.

Now, Castano needs dialysis three times a week to filter her blood. But the hospital attached to Venezuela’s Central University, once one of South America’s top institutions, frequently suffers water outages and lacks materials for dialysis.

“I spend nights not sleeping, just worrying,” said Castano, who weighs around 77 pounds (35 kg), as she lay on an old bed in a bleak hospital room, its bare walls unadorned by a television or pictures.

Her roommate Lismar Castellanos, who just turned 21, put it more bluntly.

“Unfortunately, I could die,” said Castellanos, who lost her transplanted kidney last year and is struggling to get the dialysis she needs to keep her body functioning.

The women are among Venezuela’s roughly 3,500 transplant recipients. After years leading normal lives, they now live in fear as Venezuela’s economic collapse under President Nicolas Maduro has left the once-prosperous OPEC nation unable to purchase sufficient foreign medicine or produce enough of its own.

Some 31 Venezuelans have seen their bodies start to reject their transplanted organs in the last month due to lack of medicine, according to umbrella health group Codevida, a non-governmental organization.

At least seven have died due to complications stemming from organ failure in the last three months.

A further 16,000 Venezuelans, many hoping for an elusive transplant, are dependent on dialysis to clean their blood – but here too, resources and materials are sorely lacking.

Nearly half of the country’s dialysis units are out of service, according to opposition lawmaker and oncologist Jose Manuel Olivares, a leading voice on the health crisis who has toured dialysis centers to assess the scale of the problem.

In the last three weeks alone, seven people have died due to lack of dialysis, according to Codevida, which staged a protest to decry the critical drug shortages.

Once-controlled diseases like diphtheria and measles have returned, due partly to insufficient vaccines and antibiotics, while Venezuelans suffering chronic illnesses like cancer or diabetes often have to forgo treatment.

Hundreds of thousands of desperate Venezuelans, meanwhile, have fled the country over the past year, including many medical professionals.

Amid a lack of basics like catheters and crumbling hospital infrastructure, doctors who remain struggle to cope with ever scarcer resources.

“It’s incredibly stressful. We request supplies; they don’t arrive. We call again and they still don’t arrive. Then we realize it’s because there aren’t any,” said a kidney specialist at a public hospital, asking to remain anonymous because health workers are not allowed to speak publicly about the situation.

Venezuela’s Social Security Institute, tasked with providing patients with drugs for chronic conditions, did not respond to a request for comment.

“STRAIGHT TO THE CEMETERY”

Terrified transplant patients are indebting themselves to buy pricey medicine on the black market, begging relatives abroad to funnel drugs into the country or dangerously reducing their daily intake of pills to stretch out stock.

Larry Zambrano, a 45-year old father of two with a kidney transplant, resorted to taking immunosuppressants designed for animals last year.

Guillermo Habanero and his brother Emerson both underwent kidney transplants after suffering polycystic kidney disease. Emerson, a healthy 53-year-old former police officer, died in November after a month without immunosuppressants.

“If you lose your kidney, you go to dialysis but there are no materials. So you go straight to the cemetery,” said Habanero, 56, who runs a small computer repair shop in the poor hillside neighborhood of Catia.

A Reuters reporter went to the Health Ministry to request an interview, but was asked at the entrance to give her contact details instead. No one called or emailed.

Reuters was also unable to contact the Health Ministry unit in charge of transplants, Fundavene, for comment. Its website was unavailable. Multiple calls to different phone numbers went unanswered. An email bounced back and no one answered a message on the unit’s Facebook page.

Maduro’s government has said the real culprit is an alleged U.S.-led business elite seeking to sabotage its socialist agenda by hoarding medicine and imposing sanctions.

“I see the cynicism of the right-wing, worried about people who cannot get dialysis treatment, but it’s their fault: they’ve asked for sanctions and a blockade against Venezuela,” Socialist Party heavyweight Diosdado Cabello said in recent comments on his weekly television program.

Health activists blame what they see as Maduro’s inefficient and corrupt government for the medical crisis and contend that government announcements of more imports for dialysis are totally insufficient.

Despite his unpopularity, Maduro is expected to win a new six-year term in an April 22 presidential election. The opposition is likely to boycott the vote, which it has already denounced as rigged in favor of the government.

Maduro has refused to accept food and medicine donations, despite the deepening healthcare crisis. Health activists and doctors smuggle in medicines, often donated by the growing Venezuelan diaspora, in their suitcases, but it is far from enough.

In the decaying hospital and dialysis center visited by Reuters, patients clamored for humanitarian aid.

Dolled up for her birthday and surrounded by cakes, the 21-year-old Castellanos took selfies with her friends and spoke excitedly about one day returning to dance, one of her passions.

But fears for her future permeated the room. A hospital worker stopped by to wish Castellanos many more birthday celebrations but her worried face betrayed doubts.

“Other countries need to help us,” Castellanos said.

(Additional reporting by Liamar Ramos and Leon Wietfeld; Writing by Alexandra Ulmer; Editing by Brian Ellsworth, Daniel Flynn and Tom Brown)

Lootings, scattered protests hit Venezuelan industrial city

A general view of the damage at a mini-market after it was looted in Puerto Ordaz, Venezuela January 9, 2018.

By Maria Ramirez

CIUDAD GUAYANA, Venezuela (Reuters) – A second day of lootings and scattered street protests hit the Ciudad Guayana in southeastern Venezuela on Tuesday, as unrest grows in the once-booming industrial city plagued with food shortages and a malaria outbreak.

At least five food stores were looted overnight, with police sources saying some 20 people had been arrested. Angry Venezuelans also blocked three major roads to demand anti-malaria medicine, food, cooking gas and spare parts for trucks.

There has been increasing unrest around the South American OPEC member in the last few weeks as a fourth straight year of painful recession and the world’s highest inflation leaves millions unable to eat enough.

Erika Garcia tearfully recounted how looters ransacked her food shop and home just 10 minutes after National Guard soldiers who had been patrolling the area withdrew late on Monday night.

“They stole everything. They broke off the water pipes, they ripped off the toilet bowl, they took away the windows, the fences, the doors, the beds. Everything. They did not kill us because we ran, but they did beat us up,” said Garcia, 38, who planned to sleep at a relative’s house on Tuesday night

She said there was no way she could reopen her store.

The overnight lootings follow at least four similar in the early hours of Monday. Around 10 liquor stores were also looted on Christmas day in southeastern Bolivar state, according to the local chamber of commerce head Florenzo Schettino.

Critics blame President Nicolas Maduro and the ruling Socialist Party for Venezuela’s economic mess, saying they have persisted with failed statist policies for too long while turning a blind eye to rampant corruption and suffering.

The government says it is the victim of an “economic war” by political opponents and right-wing foreign powers, intent on bringing down Maduro in a coup. The Information Ministry did not respond to a request for comment about the lootings on Tuesday.

The wave of plunder has spooked many in Ciudad Guyana, leading more people to stay indoors come nightfall and dissuading some stores from opening.

Metal worker Alvaro Becerra lives near a store that was ransacked overnight.

“We lived a night of terror,” said Becerra, 52, adding he heard gunshots and saw people carrying a freezer full of food.

“Today everything is closed. There’s no place to buy. The only people who are working are those who sell vegetables,” he said.

(Reporting by Maria Ramirez; Writing by Alexandra Ulmer; Editing by Lisa Shumaker)

With opposition split, Venezuela mayoral vote will strengthen Maduro

With opposition split, Venezuela mayoral vote will strengthen Maduro

By Andrew Cawthorne and Leon Wietfeld

CARACAS (Reuters) – Venezuelans vote on Sunday in nationwide mayoral polls boycotted by major opposition parties and likely to help leftist President Nicolas Maduro consolidate power ahead of a probable 2018 re-election bid.

After withstanding massive street protests, international sanctions and dissent within his ruling Socialist Party, the 55-year-old president saw his candidates win a surprise majority in October gubernatorial elections.

Now, with 335 mayorships up for grabs, the socialists seem certain to repeat the feat, helped by opposition abstentionism, which would delight Maduro after the international opprobrium he has faced all year.

The crumbling opposition coalition’s main parties – Justice First, Popular Will and Democratic Action – have opted out of Sunday’s vote, alleging the election system is biased and designed purely to keep a “dictatorship” in power.

“It is crazy not to participate,” said political analyst Dimitris Pantoulas. “The government most likely will have one of the best results in its history … Maduro will be very strong after this election. He has the political momentum.”

The socialists already hold more than 70 percent of Venezuela’s mayorships, and are forecast to increase that share, extending their grip at a grassroots level just as Maduro mulls standing for a second six-year term in the OPEC nation.

Despite presiding over one of the worst economic meltdowns to hit any country in modern history, and with ratings barely half when he was elected, Maduro is enjoying a political upturn after the October gubernatorial vote.

He is the favorite to be the government’s candidate at the 2018 presidential election and could win if the opposition does not re-unite and re-enthuse supporters.

“DON’T THROW IN THE TOWEL”

Despite the boycott by major parties, moderate opposition supporters were still planning to vote on Sunday, arguing that it was the only way to stop the socialists amassing power.

Some of the smaller parties are fielding candidates, fuelling acrimony and in-fighting within the coalition.

“There’s huge frustration at everything that has happened this year … but we cannot throw in the towel,” said one of those candidates, Yon Goicoechea of Progressive Advance party.

Just out of jail for allegedly plotting against Maduro, Goicoechea was running for El Hatillo mayorship outside Caracas. “I can’t say when we will achieve democracy – maybe months, maybe years – but we have to fight with our only weapon: votes.”

The election was taking place at the end of a fourth year of crushing economic recession that has brought hunger, hardship and shortages to Venezuelans. Yet with the opposition in such disarray, Maduro and his allies are buoyant.

“We are going to have a great victory!” said Erika Farias running for a Caracas district mayorship. “We are fulfilling the legacy of our ‘commander’ Hugo Chavez.”

With many Venezuelans angry at both the government and opposition, some independents have registered for Sunday’s mayorship races, though there is still no sign of a third-way presidential candidate.

“The country is demanding an alternative. Mine is a protest campaign,” said Nicmer Evans, running against Farias in the capital’s Libertador district for his recently-founded party, New Vision For My Country.

As well as the mayoral elections, voters in oil-rich western Zulia state were choosing a new governor.

The opposition took that state in the October gubernatorial race but the election was annulled after winning candidate Juan Pablo Guanipa refused to swear loyalty to a pro-Maduro legislative superbody.

Results were expected to start coming in on Sunday evening.

(Additional reporting by Johnny Carvajal and Efrain Otero; Editing by Daniel Flynn and Andrew Hay)

Venezuela systematically abused foes in 2017 protests: rights groups

Venezuela systematically abused foes in 2017 protests: rights groups

CARACAS (Reuters) – Venezuela “systematically” abused anti-government protesters this year, two rights groups said on Wednesday, including through beatings, firing tear gas canisters in closed areas and forcing detainees to eat food tainted with excrement.

Unpopular leftist President Nicolas Maduro faced four months of near-daily protests asking for early elections, humanitarian aid to combat food and medicine shortages, respect for the opposition-led congress, and freedom for jailed activists.

Demonstrators say heavy-handed National Guard soldiers clamped down on their right to protest, while Maduro says his administration faced a U.S.-backed “armed insurgency.”

More than 120 people died in the unrest, with victims including demonstrators, government supporters, security officials, and bystanders.

In a joint report, New York-based Human Rights Watch and Venezuela-based Penal Forum documented 88 cases between April and September, from excessive use of force during marches to protest against arbitrary detentions. Around 5,400 people were detained, with at least 757 prosecuted in military courts, the report said.

“The widespread vicious abuses against government opponents in Venezuela, including egregious cases of torture, and the absolute impunity for the attackers suggests government responsibility at the highest levels,” said Chilean lawyer Jose Miguel Vivanco, Americas director at Human Rights Watch.

Venezuela’s Information Ministry did not respond to a request for comment.

ELECTRIC SHOCKS, BEATINGS

In one case cited, intelligence agents allegedly hanged a 34-year-old government critic from the ceiling and gave him electric shocks as they interrogated him. The man, whose name was not revealed, was ultimately released and left Venezuela.

In another case, a 32-year-old detained during a protest in Carabobo state was allegedly beaten for hours by National Guard soldiers who also threatened to rape his daughter. He said officials also fired tear gas into his cell.

Others interviewed recounted being handcuffed to a metal bench, hit with sticks, and witnessing a man being raped with a broomstick. At least 15 detainees in Carabobo said officials forced them to eat human excrement mixed in with uncooked pasta.

The government failed to acknowledge such violations, the report said, adding that instead officials “often downplayed the abuses or issued implausible, blanket denials.”

Maduro’s government says Human Rights Watch is in league with a Washington-funded conspiracy to sabotage socialism in Latin America. Rights activists are in league with the opposition and compliant foreign media, officials say, and downplay opposition violence, including setting a man on fire during a demonstration and targeting police with explosives.

The two rights groups said there were cases of protesters hurling rocks and Molotov cocktails at security forces, but that abuses by authorities went far beyond attempts to quell unrest.

(Reporting by Leon Wietfeld; Writing by Alexandra Ulmer; Editing by Susan Thomas)

China confident Venezuela can handle debt issue

China confident Venezuela can handle debt issue

BEIJING (Reuters) – China’s Foreign Ministry reiterated on Thursday that it believes Venezuela has the ability to handle its debt issue, after the oil-rich country started making interest payments on bonds following a delay that had threatened to trigger a default.

Venezuela has borrowed billions of dollars from Russia and China, primarily through oil-for-loan deals that have crimped the country’s hard currency revenue by requiring oil shipments to be used to service those loans.

On Wednesday, Venezuela won easier debt terms from Russia, as well as a vote of confidence from China – two countries that could provide a lifeline as Caracas seeks to keep its deeply depressed economy solvent.

Asked whether China was concerned that the debt would not be repaid, Chinese Foreign Ministry spokesman Geng Shuang told a regular news briefing that China-Venezuela financial cooperation was proceeding as normal.

“We believe that Venezuela’s government and people have the ability to properly handle their debt issue,” Geng said.

Venezuelan bond prices have been on a roller-coaster over the past 10 days, as President Nicolas Maduro called investors to debt restructuring talks, while pledging to keep honoring the country’s obligations.

But S&P Global Ratings declared it in selective default on two of its sovereign bonds early this week after it failed to make the coupons within a 30-day grace period.

On Wednesday, the country’s Economy Ministry said it had started transferring $200 million in interest payments on those bonds, which mature in 2019 and 2024.

(Reporting by Ben Blanchard, Writing by Michael Martina; Editing by Richard Borsuk)

Venezuela offers chocolates but little else to creditors

Venezuela offers chocolates but little else to creditors

By Deisy Buitrago and Brian Ellsworth

CARACAS (Reuters) – Venezuela’s socialist government gifted chocolates to creditors on Monday, but offered no firm proposals at a brief meeting in Caracas that left investors without a clear understanding of the government’s strategy to renegotiate $60 billion in debt.

President Nicolas Maduro confused investors this month with a vow to continue paying Venezuela’s crippling debt, while also seeking to restructure and refinance it.

Both restructuring and refinancing appear out of the question, however, due to U.S. sanctions against the crisis-stricken nation. A default would compound Venezuela’s dire economic crisis.

Monday’s short and confused meeting, attended by senior Venezuelan officials blacklisted by the United States, gave no clarity on how Maduro would carry out his plan, bondholders and their representatives who participated said afterwards.

That means Venezuela remains with the dilemma of whether to continuing paying debt at the expense of an increasingly hungry and sick population, or defaulting on creditors and burning its bridges to the global financial system.

“There was no offer, no terms, no strategy, nothing,” said one bondholder, leaving the meeting that lasted a little over half an hour at the ‘White Palace’, departing with a colorful gift-bag containing Venezuelan chocolates and coffee.

But bond prices maintained last week’s rally, with one investor saying there was relief the meeting did not include a default announcement.

Nearly $300 million in late interest payments on three bonds – PDVSA 2027, Venezuela 2019 and Venezuela 2024 – was also due on Monday after 30-day grace periods ended. But bondholders appeared unconcerned at the delay, which was due in part to increased bank vigilance of Venezuela transactions.

“My expectation is that the coupon payments will come through as well,” said Jan Dehn, Head of Research at Ashmore Investment Management. “We know that these delays exist and why they exist.”

About 100 investors, including some bondholders from New York and lawyers representing creditors, entered the ‘White Palace’ via a red carpet and were greeted by a poster of Maduro’s predecessor Hugo Chavez at the entrance of the meeting room inside.

SANCTIONS OVERSHADOW MEETING

Chief debt negotiators Vice President Tareck El Aissami and Economy Minister Simon Zerpa – on U.S. sanctions lists for drug and corruption charges respectively – attended the meeting for half an hour.

They met with some bondholders, while others stayed out of the room on concerns about penalties for dealing with officials sanctioned by Washington.

El Aissami told creditors that Deutsche Bank may soon cut off some financial services to Venezuela, participants said.

Deutsche declined to comment.

He read a statement protesting unfair treatment by global financial institutions, including U.S. President Donald Trump’s sanctions aimed at preventing Venezuela from issuing new debt.

“Now Maduro can say: ‘I showed goodwill, the bondholders showed goodwill … but unfortunately because Uncle Sam is not playing ball we can’t (refinance)’,” said Dehn, who did not attend the meeting.

“I’m not hugely surprised nothing’s come out of that meeting.”

Separately, the European Union approved economic sanctions and an arms embargo on Venezuela on Monday, although it has yet to name who will be subject to the sanctions.

Markets continue to remain optimistic that Venezuela will service its debts, noting it has made close to $2 billion in payments in the past two weeks, albeit delayed.

Bond prices were up across the board on Monday, with the benchmark 2022 notes issued by state oil firm PDVSA [PDVSA.UL] rising 3.3 percentage points.

The economic implosion has already taken a brutal toll on Venezuelans. Citizens are suffering from malnutrition and preventable diseases because they cannot find food and medicine or cannot afford them because of triple-digit inflation.

The sight of poor Venezuelans eating from garbage bags has become a powerful symbol of decay. It contrasts sharply with the era of Chavez, when high oil prices helped fuel state spending.

Halting debt service would free up an additional $1.6 billion in hard currency by the end of the year. Those resources could be used to improve supplies of staple goods as Maduro heads into a presidential election expected for 2018.

But the strategy could backfire if met with aggressive lawsuits. A default by PDVSA, which issued about half of the country’s outstanding bonds, could ensnare the company’s foreign assets such as refineries in legal battles – potentially crimping export revenue.

(For a graphic on ‘Venezuela’s economy’ click http://tmsnrt.rs/2pPJdRb)

(Additional reporting by Corina Pons in Caracas and Dion Rabouin in New York; Writing by Andrew Cawthorne; Editing by Andrew Cawthorne, Frances Kerry and Rosalba O’Brien)

Russia, China, others boycott U.S. meeting at U.N. on Venezuela

Russia, China, others boycott U.S. meeting at U.N. on Venezuela

By Michelle Nichols

UNITED NATIONS (Reuters) – Russia, China, Egypt and Bolivia boycotted an informal public United Nations Security Council meeting on Venezuela on Monday organized by the United States, saying the 15-member body should not be involved in the situation.

“The issue is about meddling with the internal domestic affairs of Venezuela,” Russian U.N. Ambassador Vassily Nebenzia told reporters, adding that he hoped the country could settle its issues peacefully without any external interference.

U.S. Ambassador to the United Nations Nikki Haley told the meeting: “The fact that the (Venezuelan) government would go so far as to try and get people not to show up to a meeting is guilt. And that’s unfortunate.”

Venezuela is suffering from a harsh economic crisis and President Nicolas Maduro’s government has clamped down on the opposition, jailing or otherwise barring from office many dissenting leaders and activists.

Dozens of people have died in violence since the opposition began a sustained wave of protests in April. Met by rubber bullets, water cannon and tear gas fired by the National Guard, the protesters say the crisis demands an early presidential election that they are sure Maduro would lose.

His popularity has been pounded lower by triple-digit inflation and acute food and medicine shortages.

“We received pressure from regional partners not to have this meeting,” Haley said. “This goal is not to degrade anyone. This is not to humiliate a region. This is only to lift up the region.”

Uruguay’s Deputy U.N. Ambassador Luis Bermudez attended the U.N. meeting, but said his country did not believe the situation in Venezuela was a threat to international peace and security.

Venezuela’s U.N. Ambassador Rafael Dario Ramirez spoke to reporters as the meeting was being held, flanked by Nebenzia, Chinese Deputy U.N. Ambassador Wu Haitao and Bolivian U.N. Ambassador Sacha Sergio Llorentty Soliz.

“The meeting is a hostile and clearly interfering act of the United States that undermines the principle of sovereignty of a member state of the U.N.,” Ramirez said. “We condemn this act of political manipulation.”

European Union foreign ministers approved economic sanctions, including an arms embargo, on Venezuela on Monday, saying regional elections last month marred by reported irregularities had deepened the country’s crisis.

The United States has also imposed targeted sanctions on top Venezuelan officials.

The U.N. Security Council also met behind closed doors in May, at Washington’s request, to discuss the crisis in Venezuela.

(Reporting by Michelle Nichols; Editing by James Dalgleish)

Unversed in debt details, Venezuelans desperate for any relief

People line up to pay for their fruits and vegetables at a street market in Caracas, Venezuela November 3, 2017.

By Alexandra Ulmer and Andrew Cawthorne

CARACAS (Reuters) – Venezuelans heaving under an unprecedented economic meltdown know little about the finer points of foreign debt negotiations, but long for anything that would put more food on their plate and slow the world’s highest inflation.

Few on the streets of capital Caracas really understood unpopular leftist President Nicolas Maduro’s announcement this week that he would seek to refinance the oil-rich nation’s heavy bond burden of $60 billion – or about $2,000 per person.

But those interviewed by Reuters said they were hoping any deals between the government and its multiple foreign creditors would free up foreign currency to increase imports of scarce food, medicine, and basic products.

“Maybe it will work, and improve the country,” said Johny Vargas, 53, a construction worker who says he often only eats twice a day because his salary is gobbled up by price increases.

“Everything is so expensive. There’s no food, nothing. Maduro’s useless. Look at the bad state we’re in.”

Up to now, Venezuela’s ruling Socialist Party has prioritized debt payments by slashing imports, compounding four years of recession and shortages on the shelves.

Should a debt renegotiation be reached, it could free more money in the short-term for the government to bring in basic foods and medicines.

But Wall Street is skeptical, and so are many Venezuelans.

“We can’t have strong negotiations. We don’t have the credibility to sit down and make requests,” said 35 year-old accountant Mayerling Delgado, referring to Venezuela’s increasingly fraught relations with many other countries.

“So we have to pay,” she added in a resigned tone, in a busy Caracas plaza.

Experts have long warned that debt accrued under late leader Hugo Chavez was unsustainable, and urged Maduro’s government to refinance its debt load.

But pursuing such an operation now is near impossible given Venezuela’s economic mess, a dearth of technocrats in the government, and, especially, sanctions that bar U.S. banks from participating in or negotiating new Venezuelan debt deals.

 

NOT PAYING IS WORSE?

Most Venezuelans balk at the idea of a default, which would trigger lawsuits by creditors seeking to seize assets such as refineries in the United States. That could plunge the OPEC nation of 30 million people into even worse hardship.

“The majority of the population has consistently perceived a default as a negative move that could hurt the country’s economy,” said economist Luis Vicente Leon of pollster Datanalisis.

But with many analysts viewing a default as ultimately unavoidable given the parlous state of Venezuela’s coffers, some said it might be better to bite the bullet.

“What’s the science behind paying when you’ve already lost? It’s not what we as Venezuelans want … but there’s no other way out, unfortunately,” said beautician Harlee Tovitto, 42. She plans to emigrate to neighboring Colombia soon because she can no longer afford clothes or insurance for her three children.

Amid a deepening spat with U.S. President Donald Trump’s administration, some Venezuelans think Caracas would find a way out of its bond mess if it weren’t for the U.S. sanctions.

“If Venezuela has always paid its debt … why can’t they refinance?,” said Rafael Moreno, 30, a lawyer and former Chavez supporter who now says he does not back either the government or opposition.

 

(Reporting by Alexandra Ulmer and Andrew Cawthorne, Editing by Rosalba O’Brien)

 

Major Venezuelan opposition parties to boycott local polls

Major Venezuelan opposition parties to boycott local polls

By Andreina Aponte and Andrew Cawthorne

CARACAS (Reuters) – Three of Venezuela’s largest opposition parties vowed on Monday to boycott mayoral polls later this year in protest at an election system they say is biased in favor of President Nicolas Maduro’s ruling socialists.

The multi-party Democratic Unity coalition has had a tough 2017, first failing to bring down Maduro in four months of protests that led to 125 deaths, then losing surprisingly to the Socialist Party in a gubernatorial election earlier this month.

That has left the opposition weakened and divided, and Maduro strengthened, despite growing foreign pressure on his government over alleged rights abuses and corruption, and an unprecedented economic crisis that has millions skipping food.

Three heavyweight movements in the opposition – Justice First, Popular Will and Democratic Action – announced on Monday they did not trust the government-leaning election board sufficiently to participate in the municipal polls in December.

Justice First leader Julio Borges, who also heads the opposition-led congress, said authorities cheated in the 2013 presidential election, denied Venezuelans a recall referendum last year, and rigged the Oct. 15 gubernatorial vote.

So instead of going into another “manipulated” vote, the opposition should focus on demanding reforms to the election board in anticipation of next year’s presidential poll, he said.

“The objective remains getting Nicolas Maduro out of power, and in this struggle, the world is with us,” he told reporters.

To the surprise of some, the Democratic Action party also joined the boycott. Its candidates won four governorships in October’s vote and then infuriated many opposition supporters by swearing loyalty to a pro-Maduro legislative superbody.

MADURO: ‘BALLOTS, NOT BULLETS’

Opposition supporters have been split over participating in elections this year. Some say it is the only way to show they are a majority and undermine Maduro, while a growing number argue there is no point in fighting a “dictator” via a system rigged in his favor.

They are pinning their hopes on international action, including U.S. sanctions against Maduro’s government.

Maduro, whose personal popularity has plunged since his 2013 election due to food shortages and runaway inflation, said “sabotage” and “insurrection” were being planned against the mayoral votes.

“I declare myself in battle,” the 54-year-old successor to Hugo Chavez said in a meeting with governors on Monday.

“Those who attack the election system must pay.”

Opposition leaders say the government has long been rigging elections by gross abuse of state funds in favor of socialist candidates, and dirty tricks such the last-minute moving of vote centers in opposition areas for the October ballot.

They have also presented some allegations of ballot-rigging.

However, Maduro insists Venezuela’s system is entirely trustworthy and impossible to hack. It has received international praise in the past, although it was slammed over July’s vote for the Constituent Assembly superbody.

Maduro says the street protests earlier this year were a mask for a U.S.-backed coup plot, and accuses opponents of wanting to oust him by undemocratic means.

“Venezuelans want ballots, not bullets,” said Maduro.

(Writing by Andrew Cawthorne; Editing by Alexandra Ulmer and Rosalba O’Brien)