Venezuela Working Out Payment With India

Over the past few years, one of the most concerning economic stores in the world has been the struggle faced by the nation of Venezuela. While many countries in the world have been struggling, Venezuela has had issues even meeting some of the basic needs of their citizens. Without the ability to ensure that the citizens are able to get fed, Venezuela is now considered a significant credit risk.
According to a recent publication (http://www.thehindu.com/business/Industry/india-may-solve-venezuelan-defaults/article8573138.ece), one of Venezuela’s top creditors may have found away that they are able to get repaid by Venezuela, which will end up benefiting both parties. The Commerce Ministry of India has recently announced a new plan that will help Venezuela pay down their debt owed to India.

In the new plan endorsed by Jose Manuel Gonzalez, India will not simply have an open exchange of imports and exports with Venezuela. Instead, India will hold back a portion of the money that they would normally send to Venezuela. In most cases, the import from Venezuela will include oil and other energy products. Instead of giving 100% of the purchase price to Venezuela, India will end up holding back around 30 percent of the total amount in an Indian Bank. “These funds will ultimately be held until the country is able to repay its debt and come back into good financial standing with India and other creditors located across the globe” says Manuel Gonzalez.