Goldman under fire for buying Venezuela 'hunger bonds'

Julio Borges President of the National Assembly and deputy of the Venezuelan coalition of opposition parties, meets Peru's President Pedro Pablo Kuczynski at the government palace in Lima

In the second month of nearly daily protests against Venezuela's socialist government, thousands of opposition supporters marched towards the center of the capital Caracas Tuesday, only to be tear-gassed.

Goldman confirmed the purchase Tuesday morning after the Wall Street Journal first reported it.

In his letter, Borges said Goldman Sachs's deal violates the bank's own code of conduct and its statement on human rights.

Nevertheless, the transaction highlights the extent to which investors are willing to take on increasing levels of political and economic risk as they seek high-yielding investments when interest rates still hover near zero, the New York Times explained.

He accused the Wall Street institution of extending a "financial lifeline" to Maduro and making a "quick buck" from the suffering of the Venezuelan people. "We agree that life there has to get better, and we made the investment in part because we believe it will". The government must understand that it should listen to the Venezuelan people, ' Capriles said and called on the opposition to rally in front of the Interior Relations Ministry, but past midday no one from the opposition groups had shown up. In his stead, he sent Tom Shannon, the USA undersecretary of state for political affairs, who urged Venezuela to stay in the group and defended its right to try to resolve the crisis.

"We are invested in PDVSA bonds because, like many in the asset management industry, we believe the situation in the country must improve over time", the statement said.

The opposition-controlled Congress also voted on Tuesday to ask its U.S. counterpart to investigate the deal.

The assembly said it is "deeply concerned and moved by news that has been conveyed to us about the grave situation in Venezuela".

"By giving $900 million to a dictatorship, they are funding a systematic human rights violator, they are funding immorality and for Maduro to stay in power while he keeps killing people", said Eduardo Lugo, 23, a Venezuelan attending college in NY and a leader of the protest.

"It is apparent Goldman Sachs decided to make a quick buck off the suffering of the Venezuelan people", Julio Borges, head of Venezuela's opposition-controlled congress, wrote in a public letter to Goldman Sachs CEO Lloyd Blankfein.

Fintech didn't respond to a request for comment.

Meanwhile, other Venezuelan opposition leaders wounded in anti-government march, while Mexico's top diplomat said Venezuela is no longer a democracy.

The Venezuelan government hasn't made an global public bond offering in several years since capital markets are essentially closed to it as its economy has shrunk 27% in four years, its oil production has declined rapidly and investors have become increasingly anxious about the growing likelihood of default.

"The Organization of American States is considering action against Venezuela under its Democratic Charter for Mr".

One resolution, presented by Peru and backed by a number of countries including the United States, sought to form a four-nation group to accompany Venezuela on negotiations between the socialist government of Nicolas Maduro and the opposition.

"They say we're paid to be here, but that's a lie, because if not, I wouldn't be so short of money!" she joked.

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