On 4 June 2019, almost unnoticed by the wider investment audience, Venezuela defaulted on a $750m gold swap with Deutsche Bank. After missed interest payments, Deutsche Bank accelerated the swap, which was supposed to run until 2021 and, after Venezuela did not pay its dues to close the swap, took possession of 20 tons of gold that the country had posted as collateral.
Whose hair gets cut in a sovereign default?
Whose hair gets cut in a sovereign default?
Whose hair gets cut in a sovereign default?
On 4 June 2019, almost unnoticed by the wider investment audience, Venezuela defaulted on a $750m gold swap with Deutsche Bank. After missed interest payments, Deutsche Bank accelerated the swap, which was supposed to run until 2021 and, after Venezuela did not pay its dues to close the swap, took possession of 20 tons of gold that the country had posted as collateral.