Venezuela Lawmakers Ask Wall Street to Stop Aiding Maduro

April 18, 2017 at 22:10

Lawmaker Angel Alvarado, a member of the National Assembly’s Finance Committee, said the letter has gone to banks including Citigroup Inc., Goldman Sachs Group Inc. and Bank of America Corp.

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Nicolas Maduro, president of Venezuela, speaks during a ceremony with Militia members in Caracas, Venezuela, on April 17. Photographer: Carlos Becerra/Bloomberg — Nicolas Maduro, president of Venezuela, speaks during a ceremony with Militia members in Caracas, Venezuela, on April 17.
Photographer: Carlos Becerra/Bloomberg

Venezuela’s opposition is reaching out to Wall Street banks to dissuade them from helping the country monetize its $7.7 billion in gold reserves.

Venezuela is going to try to stave off default by seeking to swap its gold reserves into cash, and any investment bank that helps will be effectively “supporting a government recognized by the international community as dictatorial,” according to a letter the opposition-led congress sent Monday to top banks. Lawmakers also approved a measure today that they say would nullify any government debt issuance, as well as any debt swaps and pledges of gold as collateral, not explicitly approved by congress.

“The national government, through the central bank, is going to try to swap gold held as reserves for dollars to stay in power unconstitutionally,” according to the letter signed by National Assembly President Julio Borges. “I have the obligation to warn you that by supporting such a gold swap you would be taking actions favoring a government that’s been recognized as dictatorial by the international community.”

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