South America on the Rise as US Declines
While the US repeatedly raises its debt ceiling, auctioning bonds by the billions to foreign creditors, South American countries continue to shed their foreign debt obligations.
[Venezuela] said in a statement late Saturday it plans to buy back about US$700 million (euro588 million) in Par and Discount Brady bonds around March 1.Chavez is no fool. He knows the game.
The country will buy back an additional US$3.2 billion (euro2.7 billion) on dates of future interest payments, the ministry said.
The Brady bond repurchases would amount to about 15.2 percent of Venezuela's foreign debt obligations, a ministry official told Dow Jones Newswires. Venezuela's total outstanding public foreign debt stood at US$31 billion (euro26.1 billion) as of Dec. 31, according to preliminary ministry data.
Chavez has often claimed that such debt instruments are designed to benefit rich countries while saddling poorer ones with crippling interest payments. He has made buying back foreign debt an ongoing policy amid the government's surging revenues from oil exports.Country after country asserts its economic independence and national sovereignty on the world stage - Iran, Argentina, Venezuela, Bolivia, Brazil, even Norway.
Venezuela is the world's fifth-largest oil exporter.
[It]will seek to pay off its loans with international creditors like the World Bank and Inter-American Development Bank earlier than planned.
Other countries in Latin American have also made efforts to pay off foreign debt amid surging exports and a falling dollar. Brazil announced on Friday that it would buy back US$6.34 billion (euro5.32 billion) in the last of its Brady bonds.
The gig is up.
But, rest assured, the powers that be will not cede world dominance without a struggle.