SELF FINANCING: $5 Billion in Venezuelan Bonds
Venezuela is one country where almost zero sovereign wealth capital flows into versus its neighbor Brazil, according to SWFI transaction data. One-time Latin American paradise, Venezuela is on the brink of utter chaos, as inflation heads for 1000%. Venezuela at one point had some of the largest oil reserves in the world and at one time a growing sovereign fund. Fortunes shifted when Hugo Chavez came into power and implemented a “Bolivarian Revolution” by nationalizing businesses, spending big on social programs and changing governance structures. The country quickly embraced confiscatory socialist policies under Chavez and continuing under Venezuelan President Nicolas Maduro which has spooked many traditional investors. In addition, low oil prices have put tremendous pressure on the socialist state, thus shortages are occurring in many areas such as food and medicine. The Venezuelan government currently imports almost all of the country’s food.
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