Maduro’s Band-Aid to Venezuela’s Economic Crisis

President of Venezuela Nicolas Maduro, instead of creating a free market economy and encourage the private industry and entrepreneurs in Venezuela, decided to put a band-aid to the Venezuelan economic crisis that the Chavez regime created. The selling of $2.5 billion in CITGO bonds and getting a $1 billion loan from CITGO  will further push Venezuela into an economic meltdown. CITGO is owned by Petroleos de Venezuela (PDVSA), which is controlled by the government.  This quick CITGO bonanza will temporarily alleviate the enormous cost of the Venezuelan Socialism of the XXI century created by Hugo Chavez. 

During his 13 years in control of Venezuela, Hugo Chavez arbitrarily expropriated many domestic and foreign companies including the Exxon Corporation. Venezuela owes $2.5 billion jto the Exxon Corporation alone, and that debt will have to be paid before te regime get any money out.  The default of Venezuela under the Maduro regime is inevitable. 

http://www.bloomberg.com/news/2015-01-20/citgo-said-to-plan-2-5-billion-of-debt-for-dividend-correct-.html

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