• daniel brown
  • BBC World, Caracas

image source, BBC World Service

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Venezuela has a good reputation on Wall Street, but will it stay that way?

Venezuela has a reputation for being «buena paga,» or paid well. But the rumors that in October they could declare default are on the table.

It all started two weeks ago with an article by the Venezuelan economist, former Minister of Planning and Harvard professor Ricardo Haussman.

In the essay, he argues that the government must stop paying its debt to bondholders on Wall Street in order to pay airlines, pharmaceuticals and food importers, among others, and thus solve some of the scarcity problems that Venezuelans are experiencing.

The rehearsal soon all kinds of reactions. On the one hand, the president, Nicolás Maduro, asked the Prosecutor’s Office to investigate Professor Haussman for launching a «campaign to harm the country.»