It’s been a while since Guido’s global coverage caught up with how the loony Labour left’s favourite socialist paradise is getting on. Well, today Venezuela’s probability of defaulting on its debts has sky-rocketed to 93%, as the oil price slump sends the country’s bond prices to a 16 year low. The graph above from Zero Hedge shows how default risk has gone through the roof.
“Venezuela, which has seen over 1,000 of its companies nationalized since former President Hugo Chavez came to power 15 years ago, relies on oil for 95% of its export revenue. The nation is plagued by chronic shortages of everything from milk to toilet paper amid the world’s fastest inflation. The economy is expected to shrink 3% this year and another 1.5% in 2015.”
Owen Jones, Diane Abbott et al don’t tend to talk about Venezuela so much these days…