Citigroup Inc plans to sell several tons of gold placed as collateral by Venezue...
CARACAS - 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.
Citibank plans to sell the gold held as a guarantee - which has a market value of roughly $1.358 billion - to recover the first tranche of the loan and will deposit the excess of roughly $258 million in a bank account in New York, two of the sources said. Guaido invoked Venezuela’s constitution to announce an interim presidency in January. However, Maduro retains control over state institutions in Venezuela and has the support of the powerful military. He has branded Guaido a U.S. puppet.
A Venezuelan government source familiar with the matter confirmed that the country’s Central Bank did not transfer the money to Citibank this month. Guaido is attempting to freeze bank accounts and gold owned by Venezuela abroad, much of which remains in the Bank of England. At the end of 2018, the Central Bank paid investment bank Deutsche Bank AG about $700 million to recover ownership of a portion of gold used as collateral for a loan.
In meetings between members of Guaido’s team with legal advisors in the United States, there were discussions of starting renegotiations soon not only with Venezuelan bondholders, but also with the Chinese and Russian governments and companies affected by a wave of nationalizations, said the sources.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Citigroup to sell Venezuelan gold in setback to President MaduroThe gold was placed as collateral by Venezuela's central bank on a $1.6 billion loan after the deadline for repurchasing them expired this month.
Read more »
Maduro Loses Grip on Venezuela’s Poor, a Vital Source of His PowerWith the U.S. and other countries supporting Juan Guaidó, the loss of support among even the poorest Venezuelans strips the country’s president of a crucial base, leaving him to rely solely on the loyalty of his armed forces. It also pits the government against the very people who put it in charge.
Read more »
Foxconn Ventures sells $398.4 million in Alibaba stock: sourcesFoxconn Ventures Holdco has sold $398.4 million worth of Alibaba Group Holding L...
Read more »
Mar-a-Lago, massage parlours and selling access to the presidentDespite not voting for a decade, Mar-a-Lago patron Li Yang has become a fixture at high-level Republican events
Read more »
Amid Brexit shambles, Citigroup sees 3 ways to profit in the 'uninvestable' UK'Many investors view the UK as uninvestible. We get it,' says Citi analysts, who nevertheless found domestic stocks, commodities, and debt in the UK.
Read more »
Indian groups urge boycott of Chinese goods to 'teach a lesson' after U.N. setbackAn Indian traders' body and the economic wing of an influential Hindu natio...
Read more »
Brexit setback for May: speaker rules she must change her plan to get another votePrime Minister Theresa May's Brexit plans were thrown into turmoil on Monda...
Read more »
Brexit setback for May: speaker rules she must change her plan to get another voteBrexit setback for UK Prime Minister Theresa May: speaker of parliament rules she must change her plan to get another vote
Read more »
Opinion | China Vetoes Venezuelan FreedomOpinion: At the U.N. as in Latin America, Beijing’s money outweighs morality, writes MaryAnastasiaOG
Read more »