Skip to content
Subscriber Only

In China, Venezuela Default Talk Is Front-Page News

  • People’s Daily article makes case for maintaining aid
  • Barclays, Exotix doubt China will increase financial backing
Updated on

Whether crisis-ridden Venezuela will default is a question increasingly on the minds of bond traders. It’s now also one that is getting front-page treatment from China, one of the Latin American country’s biggest financial backers.

On June 11, the People’s Daily -- the mouthpiece paper of China’s Communist Party -- published an article in its overseas edition with the headline “Will Venezuela Default?” After considering its willingness and ability to pay, the author concludes the answer is no and chalks up all the talk about default to media speculation. The article also makes the case for China, whose $3.2 trillion of foreign reserves are the world’s largest, to maintain its support to Venezuela.