Published On: Mon, Mar 31st, 2014

Airlines reject debt repayment of 11.30 per dollar

MaduroCARACAS – The Venezuelan President, Nicolas Maduro met with international airlines operating in the country presenting a shameful "last payment proposal" calculating debt to 11.30 bolivars per dollar, although the bulk of the commitment of 3.7 billion dollars was gained when the bolivar was at 6.30 per dollar. This is according to an industry source who declined to be identified.

“All the airlines rejected the proposal, bringing the negotiations back to point zero,” the source indicated. Accepting the cancellation to the benchmark rate of Complementary Currency Management System I, imply a loss for carriers of about 1.5 billion dollars.

Since late last year the government sector has proposed various forms of payment, ranging from gasoline to cancel debts by using national bonds, but neither mechanism has materialized.

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