Economic indicators worsen despite Maduro mining claims

The Bank of America cancelled an investor trip to Venezuela planned for next month because of security reasons, following a similar decision by Barclays in July. Meanwhile, the state-owned oil company PDVSA reportedly has begun talks with Credit Suisse AG for a possible swap of bonds expiring in 2017, as it seeks to alleviate the heavy debt payments required in the coming months. Also, Venezuela’s international gold reserves slumped 25 percent in the first half of the year as the country’s foreign currency crisis deepens, surpassing the 16 percent decline predicted by the International Monetary Fund. 

Russ Dallen, an expert on Venezuela’s debt and managing partner at Caracas Capital Markets, says that if the country effectively runs out of money “It means a civil breakdown of a country.” 

President Maduro claims that Venezuela has struck a $4.5 billion mining deal with U.S., Canadian and South African companies, with a further $20 billion in deals looming. However,Reuters notes that Maduro failed to give any further detail on where the projects would be or what they are for.