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Venezuela Is So Broke It Can’t Even Print Its Own Money

By: Raquel García - @venturaG79 - Apr 7, 2016, 11:29 am
Venezuela broke; it's unclear whether the Central Bank of Venezuela paid the debt to its paper money and passport provider in March
It’s unclear whether the Central Bank of Venezuela paid the debt to its paper money and passport provider in March (Yaesnoticia)

EspañolThe world’s most renowned banknotes, coins and paper printing house, De La Rue, based in England, demanded that the Central Bank of Venezuela pay up US$262,647,997 in fees for printing money and passports, among other goods.

In a letter last month,De La Rue Director Ruth Euling told Director of the BCV José Khan that being a public company listed on the London Stock Exchange, the institution has an obligation to declare their financial position “if at any time it deviates from expectations.”

She added that De La Rue is obliged to publish its detailed financial statements at the end of its fiscal year.

“If there is any possibility of not getting paid before this date, it would impact our financial position and we are under the obligation to inform our shareholders and the authorities that regulate the London Stock Exchange through a public announcement,” Euling said in her statement.

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“We wish to express our deep concern regarding the current debt of the BCV with De La Rue, and the serious consequences it could have for both institutions if left unresolved for much longer,” she said.

To resolve the situation as soon as possible, and to have no problems with its financial statements, De La Rue proposed BCV to remedy an outstanding debt of $71,421,039 before March 24.

She also proposed covering “the guarantees currently open in the amount of $97,626,958 for contracts related to the paper money and passport supply, which have already been delivered and accepted in accordance with the respective contracts.”

It requested the BCV to agree on contract terms for future bids “to ensure that neither party ends in a similar situation regarding new projects.”

It is unknown whether the BCV debt with De La Rue was honored before March 24, but its failure to pay on a regular basis is a sample of the crisis in which most Venezuelan institutions are mired.

Source: El Informador, La Patilla.

Raquel García Raquel García

Raquel García is a Venezuelan journalist with over 16 years of experience in digital outlets and radios. She currently lives in Buenos Aires, Argentina. Follow her @venturaG79.