Goldman Sachs condemned for buoying Venezuela with $2.8bn bond purchase

[GatoGordo]

2. And what a great deal for ordinary Venezuelans!

Source: Caracas Chronicles

Meth Finance

By Frank Muci - May 29, 2017

"Let’s be explicit about what the graph means: in return for $865 million now, the government committed to dishing out a total of $3.65 billion through 2022, split between $2.8 billion in principal and $756 million in interest. It’s unbelievable. The government now has to fork up the $865 million three times over by 2022 to make good on the $2.8 billion in bonds —and has to pay a crippling $756 million interest on top of that.
The deal has an “internal rate of return” of 48%. That means this is equivalent to taking out a loan at 48% interest… in dollars!"

-snip-

https://www.caracaschronicles.com/2017/05/29/meth-finance/

The scam is as old at time itself. Taking out a loan to pay of the interest on another loan, in order to keep your lenders lending.