Venezuela: The Iranian house contract, the upcoming default
“A story of inefficiency, incapacity, commissions, fights and over payments” at The Devil’s Excrement:
The Curious And Dysfunctional Iranian Prefab Housing Contract. Supposedly Venezuela bought 3 factories for building prefab houses.
Everything that could go wrong, went wrong, including,
the lawyer for the Iranian company that built the factories says he was ripped off. You see, Iranian companies can not work directly via the US because of the boycott, so that there are companies that charge 10-15% commission, according to the article, to “triangulate” the payments via Canada. Well, the US$ 2.8 million payment is apparently in some sort of limbo, as it was sent to one of these intermediary companies and never reached Iran. The Iranian guy even boasts that some of the equipment for the project traveled via the US, “without anybody” noticing.
Merentes: Venezuela to pay foreign debt service on Wednesday
Individuals will be allowed to trade foreign currency under new forex system. How’s that looking? Not very well: Bonds issued in 2013 due this week for $1.642 billion equal 83.9% of liquid reserves totaling $1.95 billon as of the end of July. As if that wasn’t bad enough, the payment due this week is less thank half the total payments due by year’s end.
There’s not enough revenue to cover that, either, so brace for a default.
Tags: Fausta's blog