Kenneth Rijock

Kenneth Rijock

Wednesday, July 13, 2016

MILITARY TAKEOVER OF VENEZUELA'S FIVE PRINCIPAL PORTS AND COUNTRY RISK


This week, the president of Venezuela, Nícolas Maduro, transferred control of the country's five principal ports to the military. Compliance officers at international banks who have financial exposure, or whose clients are creditors of the private sector, would do well to immediately reexamine their assessment of Country Risk.

Additionally, given the increased risk of non-payment, financial institutions who are themselves contemplating additional exposure should study the effect of this change in control upon the ability to make repayment, or to repay new obligations. Essentially, the current chaotic state of the Venezuelan economy places Country Risk close to the highest level already, and this new complication makes it worse.

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