CARACAS, Monday December 17, 2012 | Update
DEBT | According to Markit

Cost of underwriting Venezuela's debt rises after gubernatorial election

Insurance to protect the creditors of Venezuelan sovereign bonds increased on Monday after the favorable results for pro-government candidates in the election of Sunday, December 16

Monday December 17, 2012  01:03 PM
The cost of underwriting Venezuelan government debt in the event of default surged on Monday to reverse a portion of recent profits, following the landslide victory of the followers of President Hugo Chávez in the gubernatorial election, according to numbers provided by Markit.

Credit default swaps (CDS) had dropped since President Chávez appointed a successor on December 8. The action raised the expectations about his stepping down after 14 years in office, Reuters cited.

Nevertheless, on Monday the CDS of the five-year debt bonds climbed 28 base points to 647 base points, according to Markit, a leading, global financial information services company.

Additionally, Venezuela's benchmark bond, maturing in 2007, shed 1.5 cents to USD 99.8.
Tuna and sardines are simply not there

The can of tuna, formerly a fairly normal pantry staple, has long been missing from stores in Venezuela, especially the domestic brands. When tuna cans, imported or domestic, do occasionally show up on store shelves, prices have increased several fold.

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