May 2019
“Mortgaged to the hilt”
US President Donald Trump, himself a veteran of multiple bankruptcies, points to Russia and China as significant contributors to Venezuela’s financial debacle. On May 1,
he told Fox Business: “The advantage (Venezuela has) is they have oil. It’s mortgaged out to the hilt between China and Russia.They just sucked money out of everybody. (Venezuela) has mortgaged their oil almost to the maximum. …
When you think about it, what has to be done, essentially, it’s called a country foreclosure.”
Overall, Venezuela could owe China more than $55 billion and Russia at least $17 billion, estimates Moises Rendon, a former Venezuelan bank analyst who is now Associate Director of the Americas program at the Center for Strategic & International Studies in Washington, D.C.
China has loaned
more than $60 billion to Venezuela since 2007, most in exchange for promises of
repayment in oil. Russia too has made
significant loans to Venezuela as well selling arms on credit. Both countries already are slowly reducing their debts by taking oil deliveries.