“Venezuela May Halt Debt Payments,” New York Times, March 3,
1989
Main Point
After riot break out in Venezuela, the government might be forced to suspend all payments on the country in foreign debt.
Mr. Perez, the President said about 300 people had died and at least 1000 wounded in street riot. The riot was result of Government’s economic measures. The payment will be suspended until the country’s economic situation improves.
The international bankers said that the suspension of temporary, and will resume when more money was available either though new short-term credits or multilateral loans.
Foreign banking officials in Caracas said the Government had been careful not to repudiate international obligations which greatly reduces further credits from foreign banks.
In his news conference, Mr. Perez warned the industrial nations must take action to avert the threat that huge debt payments pose to democracy in the developing world. Among the measures that provoked the most was increases of 30 to 50 percent in fares for public transportation. However, Mr. Perez insisted that the measures ware designed to restructure the nation’s economy for future growth.
Summary by Dohyung Kim