Archive for August 10th, 2010

Military Prosecutor goes after retired General for denouncing Cuban presence in Armed Forces

August 10, 2010

In another case that shows that the robolution has no morals or scruples, the military Prosecutor will go after retired General Antonio Rivero, accusing him defaming the Armed Forces and repeatedly revealing private or secret information about the Venezuelan Armed Forces. Both charges are punishable by prison.

Rivero, a former Chavez supporter and now victim of Chavez’ praying mantis effect, retired from the Armed Forces and immediately denounced to the General Prosecutor and the Venezuelan National Assembly the presence of Cuban in Venezuela’s Armed Forces in places and strategic areas which are beyond what is allowed.In denouncing this, Rivero said that this presence is not part of an alliance approved by the Venezuelan National Assembly and violates both the Constitution and the country’s sovereignty.

That is how much the regime controls the judicial strings of the country. Rivero’s accusations rather than cause the outrage of those that daily proclaim their defense of the country’s sovereignty, instead are turned against him by his former buddy.

The Cuban presence is considered to be a secret, a wide open one at that, in a country where even food imports are approved by Cuban , rather than Venezuelan officials. The so called revolution, which claims to defend the country’s independence from anyone, has sold out to the Cuban presence, allowing it to permeate in all aspects of civilian and military life and decision making.

Another outright lie by the fake revolution. Another miscarriage of justice by the Chavez Government. Another proof that the traitors are those in Government, including the Dictator himself.

2022 Venezuelan Bond details announced

August 10, 2010

The Government announced yesterday the details of the new bond which will mature in 2022. The bond will have a coupon of 12.75%, amortize in three parts in 2020, 2021 and 2022 and will be sold to locals at 100% of its face value, which was announced today.

With these parameters, the bond should yield around 15% in the firts few days, which corresponds to a price of 87% in US$. This implies that anyone buying the bond for local currency would be acquiring dollars roughly at Bs. 4.9 per dollar, even below the price of the Central Bank’s System SITME.

I puzzle about both the maturity and coupon assigned the bond. This is very expensive for the country.  They could have gone easily with 10-10.5% and/or a shorter maturity. The theory is the Governmenmt wanted importers to get as many dollars as possible.

The bond will be sold only by banks. With these parameters I find the bond attractive for both locals to get foreign currency and for foreigners in the secondary market. It should trade above the curve initially and the coupon is very attractive, thus I expect it to draw a lot of attention among the many Venezuelan bonds and the usual pressure by locals selling will make it trade below its true value in the first few days.