The Jim Bakker Show

U.N. pleads for end of Yemen blockade or ‘untold thousands’ will die

GENEVA (Reuters) – The heads of three U.N. agencies issued a fresh plea on Thursday for the Saudi-led military coalition to lift its blockade on Yemen, warning that “untold thousands” would die.

The coalition closed all air, land and sea access to Yemen last week following the interception of a missile fired toward the Saudi capital, saying it had to stem the flow of arms from Iran to its Houthi opponents in the war in Yemen.

Yemen already has 7 million people on the brink of famine, but without the reopening of all ports that number could grow by 3.2 million, the statement said.

“The cost of this blockade is being measured in the number of lives that are lost,” David Beasley, Antony Lake and Tedros Adhanom Ghebreyesus, the heads of the World Food Programme, UNICEF and the World Health Organization, said in the statement.

“Together, we issue another urgent appeal for the coalition to permit entry of lifesaving supplies to Yemen in response to what is now the worst humanitarian crisis in the world.”

Saudi Arabia has since said that aid can go through “liberated ports” but not Houthi-controlled Hodeidah, the conduit for the vast bulk of imports into Yemen.

For months, the U.N. has warned that the closure of Hodeidah would dramatically escalate the crisis.

“Without fuel, the vaccine cold chain, water supply systems and waste water treatment plants will stop functioning. And without food and safe water, the threat of famine grows by the day,” the U.N. agency heads said in the statement.

At least one million children are at risk if a fast-spreading diphtheria outbreak is not stopped in its tracks, and there is also the risk of a renewed flare-up in cholera, which was on the wane after the most explosive outbreak ever recorded – with over 900,000 cases in the past six months.

“If any of us in our daily lives saw a child whose life was at immediate risk, would we not try to save her? In Yemen we are talking about hundreds of thousands of children, if not more,” the joint statement said.

(Reporting by Tom Miles; Editing by Toby Chopra)

Venezuela offers chocolates but little else to creditors

By Deisy Buitrago and Brian Ellsworth

CARACAS (Reuters) – Venezuela’s socialist government gifted chocolates to creditors on Monday, but offered no firm proposals at a brief meeting in Caracas that left investors without a clear understanding of the government’s strategy to renegotiate $60 billion in debt.

President Nicolas Maduro confused investors this month with a vow to continue paying Venezuela’s crippling debt, while also seeking to restructure and refinance it.

Both restructuring and refinancing appear out of the question, however, due to U.S. sanctions against the crisis-stricken nation. A default would compound Venezuela’s dire economic crisis.

Monday’s short and confused meeting, attended by senior Venezuelan officials blacklisted by the United States, gave no clarity on how Maduro would carry out his plan, bondholders and their representatives who participated said afterwards.

That means Venezuela remains with the dilemma of whether to continuing paying debt at the expense of an increasingly hungry and sick population, or defaulting on creditors and burning its bridges to the global financial system.

“There was no offer, no terms, no strategy, nothing,” said one bondholder, leaving the meeting that lasted a little over half an hour at the ‘White Palace’, departing with a colorful gift-bag containing Venezuelan chocolates and coffee.

But bond prices maintained last week’s rally, with one investor saying there was relief the meeting did not include a default announcement.

Nearly $300 million in late interest payments on three bonds – PDVSA 2027, Venezuela 2019 and Venezuela 2024 – was also due on Monday after 30-day grace periods ended. But bondholders appeared unconcerned at the delay, which was due in part to increased bank vigilance of Venezuela transactions.

“My expectation is that the coupon payments will come through as well,” said Jan Dehn, Head of Research at Ashmore Investment Management. “We know that these delays exist and why they exist.”

About 100 investors, including some bondholders from New York and lawyers representing creditors, entered the ‘White Palace’ via a red carpet and were greeted by a poster of Maduro’s predecessor Hugo Chavez at the entrance of the meeting room inside.

SANCTIONS OVERSHADOW MEETING

Chief debt negotiators Vice President Tareck El Aissami and Economy Minister Simon Zerpa – on U.S. sanctions lists for drug and corruption charges respectively – attended the meeting for half an hour.

They met with some bondholders, while others stayed out of the room on concerns about penalties for dealing with officials sanctioned by Washington.

El Aissami told creditors that Deutsche Bank may soon cut off some financial services to Venezuela, participants said.

Deutsche declined to comment.

He read a statement protesting unfair treatment by global financial institutions, including U.S. President Donald Trump’s sanctions aimed at preventing Venezuela from issuing new debt.

“Now Maduro can say: ‘I showed goodwill, the bondholders showed goodwill … but unfortunately because Uncle Sam is not playing ball we can’t (refinance)’,” said Dehn, who did not attend the meeting.

“I’m not hugely surprised nothing’s come out of that meeting.”

Separately, the European Union approved economic sanctions and an arms embargo on Venezuela on Monday, although it has yet to name who will be subject to the sanctions.

Markets continue to remain optimistic that Venezuela will service its debts, noting it has made close to $2 billion in payments in the past two weeks, albeit delayed.

Bond prices were up across the board on Monday, with the benchmark 2022 notes issued by state oil firm PDVSA [PDVSA.UL] rising 3.3 percentage points.

The economic implosion has already taken a brutal toll on Venezuelans. Citizens are suffering from malnutrition and preventable diseases because they cannot find food and medicine or cannot afford them because of triple-digit inflation.

The sight of poor Venezuelans eating from garbage bags has become a powerful symbol of decay. It contrasts sharply with the era of Chavez, when high oil prices helped fuel state spending.

Halting debt service would free up an additional $1.6 billion in hard currency by the end of the year. Those resources could be used to improve supplies of staple goods as Maduro heads into a presidential election expected for 2018.

But the strategy could backfire if met with aggressive lawsuits. A default by PDVSA, which issued about half of the country’s outstanding bonds, could ensnare the company’s foreign assets such as refineries in legal battles – potentially crimping export revenue.

(For a graphic on ‘Venezuela’s economy’ click http://tmsnrt.rs/2pPJdRb)

(Additional reporting by Corina Pons in Caracas and Dion Rabouin in New York; Writing by Andrew Cawthorne; Editing by Andrew Cawthorne, Frances Kerry and Rosalba O’Brien)

Russia, China, others boycott U.S. meeting at U.N. on Venezuela

By Michelle Nichols

UNITED NATIONS (Reuters) – Russia, China, Egypt and Bolivia boycotted an informal public United Nations Security Council meeting on Venezuela on Monday organized by the United States, saying the 15-member body should not be involved in the situation.

“The issue is about meddling with the internal domestic affairs of Venezuela,” Russian U.N. Ambassador Vassily Nebenzia told reporters, adding that he hoped the country could settle its issues peacefully without any external interference.

U.S. Ambassador to the United Nations Nikki Haley told the meeting: “The fact that the (Venezuelan) government would go so far as to try and get people not to show up to a meeting is guilt. And that’s unfortunate.”

Venezuela is suffering from a harsh economic crisis and President Nicolas Maduro’s government has clamped down on the opposition, jailing or otherwise barring from office many dissenting leaders and activists.

Dozens of people have died in violence since the opposition began a sustained wave of protests in April. Met by rubber bullets, water cannon and tear gas fired by the National Guard, the protesters say the crisis demands an early presidential election that they are sure Maduro would lose.

His popularity has been pounded lower by triple-digit inflation and acute food and medicine shortages.

“We received pressure from regional partners not to have this meeting,” Haley said. “This goal is not to degrade anyone. This is not to humiliate a region. This is only to lift up the region.”

Uruguay’s Deputy U.N. Ambassador Luis Bermudez attended the U.N. meeting, but said his country did not believe the situation in Venezuela was a threat to international peace and security.

Venezuela’s U.N. Ambassador Rafael Dario Ramirez spoke to reporters as the meeting was being held, flanked by Nebenzia, Chinese Deputy U.N. Ambassador Wu Haitao and Bolivian U.N. Ambassador Sacha Sergio Llorentty Soliz.

“The meeting is a hostile and clearly interfering act of the United States that undermines the principle of sovereignty of a member state of the U.N.,” Ramirez said. “We condemn this act of political manipulation.”

European Union foreign ministers approved economic sanctions, including an arms embargo, on Venezuela on Monday, saying regional elections last month marred by reported irregularities had deepened the country’s crisis.

The United States has also imposed targeted sanctions on top Venezuelan officials.

The U.N. Security Council also met behind closed doors in May, at Washington’s request, to discuss the crisis in Venezuela.

(Reporting by Michelle Nichols; Editing by James Dalgleish)

Iran ends quake rescue operations, hungry survivors battle cold

By Parisa Hafezi

ANKARA (Reuters) – Iranian officials said there was little chance of finding more survivors from the earthquake that shook parts of western Iran on Sunday, killing at least 450 people, and rescue operations had now been called off, state television said on Tuesday.

Survivors, many left homeless by the 7.3 magnitude earthquake that struck villages and towns in a mountainous area bordering Iraq, battled overnight temperatures just above freezing and faced another bleak day on Tuesday in need of food and water.

President Hassan Rouhani arrived in the morning in the stricken area in Kermanshah province and promised that the government would “use all its power to resolve the problems in the shortest time”.

At least 14 provinces in Iran were affected by the quake which destroyed two whole villages, damaged 30,000 houses and left thousands of people injured.

Thousands of people huddled in makeshift camps while many others chose to spend a second night in the open, despite low temperatures, because they feared more tremors after some 193 aftershocks, state television said.

A homeless young woman in Sarpol-e Zahab, one of the hardest-hit towns, told state TV that her family was exposed to the night cold because of lack of tents.

“We need help. We need everything. The authorities should speed up their help,” she said.

Television showed rescue workers combing through the rubble of dozens of villages immediately after the quake. But Iranian officials said chances of finding any more survivors were remote.

“The rescue operations in Kermanshah province have ended,” Pir-Hossein Kolivand, head of Iran’s Emergency Medical Services, said.

Iran’s top authority, Supreme Leader Ayatollah Ali Khamenei, offered his condolences on Monday and called on government agencies to do all they could to help.

Iranian army, the elite Revolutionary Guards and its affiliated Basij militia forces were dispatched to affected areas on Sunday night.

A woman reacts next to a dead body following an earthquake in Sarpol-e Zahab county in Kermanshah, Iran. Tasnim News Agency/Handout via REUTERS

BITTER COLD

Hospitals in nearby provinces took in many of the injured, state television said, airing footage of survivors waiting to be treated. Hundreds of critically injured were dispatched to hospitals in Tehran.

Iran’s Red Crescent said emergency shelter had been provided for thousands of homeless people, but a lack of water and electricity as well as blocked roads in some areas hindered aid supply efforts.

“People in some villages are still in dire need of food, water and shelter,” governor of Qasr-e Shirin Faramarz Akbari said.

The mayor of Ezgeleh, a city in Kermanshah, said 80 percent of their buildings had collapsed and they desperately needed tents with elderly people and babies as young as one-year-old sleeping in the cold for two straight nights.

In an interview with state television Nazar Barani asked people to send them fuel, milk, water and food as emergency services were too slow and providing limited provisions.

A local man told ISNA news agency that “people are hungry and thirsty. There is no electricity. Last night I cried when I saw children with no food or shelter.”

More than 30,000 houses in the area were damaged and at least two villages were completely destroyed, Iranian authorities said.

Houses in Iranian villages are often made of concrete blocks or mudbrick that can crumble and collapse in a strong quake. Some people are angry that among the collapsed buildings were houses that the government has built in recent years under its affordable housing program.

Photographs posted on Iranian news websites showed rescue workers digging people out of collapsed buildings, cars smashed beneath rubble and rescue dogs trying to find signs of life under the twisted remains of collapsed buildings.

“More people will die because of cold. My family lives in a village near Sarpol-e Zahab. I cannot even go there. I don’t know whether they are dead or alive,” Rojan Meshkat, 38, in the Kurdish city of Sanandaj told Reuters by telephone.

Iran is crisscrossed by major fault lines and has suffered several devastating earthquakes in recent years, including a 6.6 magnitude quake in 2003 that reduced the historic southeastern city of Bam to dust and killed some 31,000 people.

The quake, centered in Penjwin in Iraq’s Sulaimaniyah province in the Kurdistan region, killed at least six people in Iraq and injured more than 68. In northern Iraq’s Kurdish districts, seven were killed and 325 wounded.

A man gestures inside a damaged building following an earthquake in Sarpol-e Zahab county in Kermanshah, Iran. REUTERS/Tasnim News Agency

(Writing by Parisa Hafezi in Ankara, additional reporting by Bozorgmehr Sharafedin in London, Editing and Nick Macfie and Richard Balmforth)

Papua New Guinea threatens to forcibly remove asylum seekers

Workers dismantle structures in Lombrum detention camp on Manus island, Papua New Guinea, November 13, 2017. Behrouz

By Colin Packham

SYDNEY (Reuters) – Papua New Guinea Immigration Minister Petrus Thomas said authorities would take steps on Monday to forcibly remove around 450 men who remain in an abandoned Australian detention center without food or running water.

Hundreds of men have barricaded themselves into the Manus Island center for more than 13 days without regular food or water supplies, defying attempts by Australia and Papua New Guinea to close the facility, saying they fear for their safety if removed to transit centers.

“We will be taking steps with relevant authorities to move the residents based on serious exposure to health risk for the food of everyone that is remaining,” Thomas said in a statement issued late on Sunday.

As of 5.00 p.m. (0700 GMT) Monday, no moves had been made by the government to remove the men, several asylum seekers inside the center told Reuters via email.

One of the asylum seekers barricaded inside the center said on Monday that water supplies have been destroyed after Papua New Guinea workers entered the site and drained rainwater collected in tanks and garbage bins.

“Immigration came and bored holes in the water tanks where we had been collecting rain water,” he said, asking to remain anonymous for fear of reprisals from Papua New Guinea authorities. “They also demolished the well we built.”

Running water and electricity to the center were disconnected two weeks ago after Australian security withdrew and the camp closed on Oct. 31. The center had been declared illegal by a Papua New Guinea Court.

The United Nations has warned of a “looming humanitarian crisis” among the asylum seekers, who are drawn largely from Afghanistan, Iran, Myanmar, Pakistan, Sri Lanka and Syria.

Australia has used the center, and a camp on the tiny Pacific island of Nauru, to detain asylum seekers who try to reach its shores by boat. It says boat arrivals will never enter Australia, even if found to be refugees, as that would encourage people smugglers in Asia.

Under a refugee swap deal, the United States has agreed to accept potentially up to 1,250 asylum seekers from Manus and Nauru, in return for Australia taking refugees from Central America. The United States has so far only accepted 54 refugees.

New Zealand has offered to resettle 150 asylum seekers, but Australia has rejected the offer.

(Reporting by Colin Packham; Editing by Jane Wardell, Peter Cooney and Michael Perry)

Venezuelan crisis spawns boom in gambling

By Andreina Aponte

CARACAS (Reuters) – “The Whale”, “The Dog” or “The Zebra”?

Players line up beside a small kiosk in a poor neighborhood to choose animals in a lottery game that has become a craze in Venezuela even as the oil-rich country suffers a fourth year of brutal recession.

It seems more and more Venezuelans are turning to gambling in their desperation to make ends meet amid the country’s unprecedented economic crisis.

Though more people lose than win overall, the illusion of a payday has become more alluring as Venezuelans endure the world’s highest inflation, shortages of basics from flour to car batteries, and diminished real-term wages.

Among multiple options from race courses to back-street betting parlors, the roulette-style “Los Animalitos” (or the Little Animals) is currently by far the most popular game on the street.

“Most people I see playing the lottery are unemployed, trying to make a bit extra this way because the payouts are good,” said Veruska Torres, 26, a nurse who recently lost her job in a pharmacy and now plays Animalitos every day.

Torres often plays more than a dozen times daily at the kiosk in Catia, spending between 5,000-10,000 bolivars, but sometimes making up to 50,000 or 60,000 bolivars in winnings – more than a quarter of the monthly minimum wage.

When that happens, she splits the money between buying food and diapers for her baby boy, and re-investing in the lottery.

The Animalitos game, whose results appear on YouTube at scheduled times, is hugely popular because it goes through various rounds, holding people’s interest, and provides more chances to win than most traditional betting options.

The cheapest ticket costs just 100 bolivars – a quarter of a U.S. cent at the black market currency rate, and more than 10 times less than that at the official exchange level.

“It helped me a lot,” said Eduardo Liendo, 63, of a timely win. He recently lost his house and lives in a car in Caracas’ Propatria neighborhood, but had a successful punt on the Animalitos, choosing the dog figure after his own had died.

There is no hard data on betting figures, and the government’s betting regulator did not answer requests from Reuters for information. But those behind Venezuela’s gambling businesses, run by a mixture of private companies and local regional authorities, said trade was booming, with lines longer and busier than ever – because of, not despite, the hard times.

“In a crisis like the one we’re going through, people drink and gamble more to escape from reality,” said psychologist Rosa Garcia from the rural state of Barinas.

The latest scarcity in Venezuela is cash – as authorities cannot produce enough notes to keep up with dizzying inflation – so many bars, shops and betting parlors have quickly switched from cash to electronic transactions to keep money flowing.

That has hit the Caracas hippodrome, where cash is still king. But thousands still go there at weekends, pushing against fences in front of the sand track to cheer their horse on as salsa music booms in the background.

(See http://reut.rs/2A2eOEB for a related photo essay)

(Reporting by Andreina Aponte; Additional reporting by Francisco Aguilar in Barinas and Ricardo Moraes in Caracas; Writing by Andrew Cawthorne; Editing by Frances Kerry)

Yemen set to run out of fuel and vaccine in a month: UNICEF

A boy is being treated at a malnutrition treatment center in Sanaa, Yemen November 4, 2017.

GENEVA (Reuters) – Yemen’s stocks of fuel and vaccines will run out in a month unless a Saudi-led military coalition allows aid into the blockaded port of Hodeidah and Sanaa airport, UNICEF’s representative in the country said on Friday.

Meritxell Relano, speaking by phone to reporters in Geneva, said fuel prices had risen 60 percent and there were urgent concerns about a diphtheria outbreak, as well as food shortages because of the port closure.

“The situation that was already catastrophic is just getting worse,” she said. “The impact of this is unimaginable in terms of health and diseases.”

After two years of civil war, Yemen has 7 million people on the brink of famine and has had 900,000 suspected cholera cases in the past six months.

The number of new cases has fallen consistently for the past eight weeks, according to data from the World Health Organization.

But progress against cholera, which has killed 2,196 people, could be reversed by the blockade, WHO spokeswoman Fadela Chaib told a regular U.N. briefing in Geneva.

“If the closure is not stopped in the coming days, we may see that the progress is stopped,” Chaib said. “We can see even more cases and more deaths as a result of not being able to get access to people.”

The closure of Hodeidah port prevented a ship setting sail from Djibouti with 250 tonnes of WHO medical supplies on Wednesday. Trauma kits in particular are running short.

“If the hostilities continue and the ports remain closed, we will not be able to perform life-saving surgeries or provide basic healthcare,” Chaib said.

(Reporting by Tom Miles; Editing by Andrew Roche)

Hungry South Sudanese refugees risk death in return home for food

By Jason Patinkin

PALORINYA, Uganda (Reuters) – Oliver Wani found sanctuary from South Sudan’s civil war in a Ugandan refugee camp. But when the food ran out, he returned home only to be killed in the conflict he had fled.

The 45-year-old farmer was one of more than a million South Sudanese living in sprawling camps just across the border in northern Uganda, seeking refuge from the four-year war that has devastated their homeland.

But funding gaps and organizational problems often delay or reduce their meager rations, driving some desperate families back to the lands they fled and underscoring the struggle to cope with Africa’s biggest refugee crisis in two decades.

Refugees from South Sudan have been arriving in Uganda at an average rate of 35,000 a month this year. The Bidi Bidi camp was home to 285,000 people at the end of September, according to the U.N.’s refugee agency, making it the biggest in Africa.

The U.N. agency (UNHCR) said funding had only covered 32 percent of $674 million requested to help refugees in Uganda in 2017 and the U.N.’s World Food Programme (WFP) said it was facing a $71 million shortfall for the next six months.

Wani, who cared for his elderly parents, received no food in October because distributions had been delayed, his father Timon said. The memory of the crops Oliver had left behind proved too tempting and he returned to South Sudan to find food.

Two weeks later, other returning refugees recognized his remains alongside another dead refugee on a forest path in South Sudan, where the ground was littered with bullet casings.

“He went back to look for food,” said Timon, a tall, thin man who wiped away tears with his handkerchief as he spoke at a memorial service for his first-born child in the Palorinya refugee camp. “I’m heartbroken.”

DESPERATE REFUGEES

The four-year war in oil-rich South Sudan, a country only founded in 2011, has forced more than a third of its 12 million citizens to flee their homes. Tens of thousands have died, some in ethnic killings, others from starvation and disease.

Palorinya is the second biggest camp in northern Uganda after Bidi Bidi and alone houses 185,000 refugees.

Each refugee is supposed to get 12 kg of grain, 6 kg of dry beans, cooking oil and salt each month, but the U.N.’s WFP said this was delayed in October because grain was scarce in Uganda and the roads to Palorinya were bad.

Food distributions did not start camp until Oct. 26, WFP said. It takes two weeks to complete a distribution, so tens of thousands of refugees did not get any food that month.

Desperate, some returned to the war zone. At least eight refugees from Palorinya were killed in South Sudan after returning to look for food in October, according to family members and the Anglican church, which tracks civilian deaths.

In August and September, when rations were distributed normally, just two refugees from the camp were killed when they returned to find food, the church diocese in South Sudan’s volatile Kajo Keji region said.

Modi Scopas John, chairman of a Refugee Welfare Committee in Palorinya, said refugees were returning home every day.

“If you have nothing to eat, what do you do?” he asked, perched on a plastic chair under a spindly tree. “You have to look for food.”

FOOD SHORTAGES

Wani was killed in Kajo Keji, where the government and two rebel groups are battling for control in a war sparked by a feud between President Salva Kiir and his former deputy Riek Machar.

Next to Wani lay the body of Yassin Mori, 35, who had also left Palorinya to look for food, according to Mori’s two brothers who ventured into South Sudan to look for him.

Mori left two wives and nine children behind.

“Now we need support because we are left with his children and widows,” Taha Igga, one of the brothers, said at a memorial service in the Ugandan refugee camp.

Mutabazi Caleb, from aid group World Vision, which runs the distributions, said that Palorinya is two months behind other camps in its food distributions.

WFP said it had substituted half the cereal ration with money in September in some other camps so refugees could buy food and was expanding its infrastructure to prevent future delays.

But refugees said even when food arrives, it doesn’t last a month. Of the 12 kg of grain, refugees said they sell one to pay for grinding the rest into flour, and another to buy soap, which is in short supply.

They also complained that the beans were sometimes inedible.

“They are not okay, others are rotten, and they are smelling,” said mother-of-four Liong Viola, 32, picking through her sack of shriveled legumes during an Oct. 26 distribution.

WFP country director El Khidir Daloum said it was investigating the complaint and, “is committed to providing our beneficiaries with the highest quality of food”.

John, the Refugee Welfare Committee chairman, said he urged people to stay in the camps.

“At least let us die here of the hunger rather than go back to South Sudan and be killed like a chicken,” he said.

But hungry refugees often ignore the pleas. At dusk last Saturday, Pastor Charles Mubarak packed extra clothes into a plastic bag to take back into South Sudan where he hoped to harvest cassava fields he left behind when he fled in January.

“As a family, we are 10 in number, and I’m not in position to feed them,” he said. “If I get killed I get killed once, but dying of hunger is too difficult.”

Mubarak kissed each neatly folded shirt as he placed them in the bag.

“If they give us the food rations, I wouldn’t think of going back to South Sudan,” he said. “Food is life.”

(Reporting by Jason Patinkin; editing by Katharine Houreld and David Clarke)

Unversed in debt details, Venezuelans desperate for any relief

People line up to pay for their fruits and vegetables at a street market in Caracas, Venezuela November 3, 2017.

By Alexandra Ulmer and Andrew Cawthorne

CARACAS (Reuters) – Venezuelans heaving under an unprecedented economic meltdown know little about the finer points of foreign debt negotiations, but long for anything that would put more food on their plate and slow the world’s highest inflation.

Few on the streets of capital Caracas really understood unpopular leftist President Nicolas Maduro’s announcement this week that he would seek to refinance the oil-rich nation’s heavy bond burden of $60 billion – or about $2,000 per person.

But those interviewed by Reuters said they were hoping any deals between the government and its multiple foreign creditors would free up foreign currency to increase imports of scarce food, medicine, and basic products.

“Maybe it will work, and improve the country,” said Johny Vargas, 53, a construction worker who says he often only eats twice a day because his salary is gobbled up by price increases.

“Everything is so expensive. There’s no food, nothing. Maduro’s useless. Look at the bad state we’re in.”

Up to now, Venezuela’s ruling Socialist Party has prioritized debt payments by slashing imports, compounding four years of recession and shortages on the shelves.

Should a debt renegotiation be reached, it could free more money in the short-term for the government to bring in basic foods and medicines.

But Wall Street is skeptical, and so are many Venezuelans.

“We can’t have strong negotiations. We don’t have the credibility to sit down and make requests,” said 35 year-old accountant Mayerling Delgado, referring to Venezuela’s increasingly fraught relations with many other countries.

“So we have to pay,” she added in a resigned tone, in a busy Caracas plaza.

Experts have long warned that debt accrued under late leader Hugo Chavez was unsustainable, and urged Maduro’s government to refinance its debt load.

But pursuing such an operation now is near impossible given Venezuela’s economic mess, a dearth of technocrats in the government, and, especially, sanctions that bar U.S. banks from participating in or negotiating new Venezuelan debt deals.

NOT PAYING IS WORSE?

Most Venezuelans balk at the idea of a default, which would trigger lawsuits by creditors seeking to seize assets such as refineries in the United States. That could plunge the OPEC nation of 30 million people into even worse hardship.

“The majority of the population has consistently perceived a default as a negative move that could hurt the country’s economy,” said economist Luis Vicente Leon of pollster Datanalisis.

But with many analysts viewing a default as ultimately unavoidable given the parlous state of Venezuela’s coffers, some said it might be better to bite the bullet.

“What’s the science behind paying when you’ve already lost? It’s not what we as Venezuelans want … but there’s no other way out, unfortunately,” said beautician Harlee Tovitto, 42. She plans to emigrate to neighboring Colombia soon because she can no longer afford clothes or insurance for her three children.

Amid a deepening spat with U.S. President Donald Trump’s administration, some Venezuelans think Caracas would find a way out of its bond mess if it weren’t for the U.S. sanctions.

“If Venezuela has always paid its debt … why can’t they refinance?,” said Rafael Moreno, 30, a lawyer and former Chavez supporter who now says he does not back either the government or opposition.

(Reporting by Alexandra Ulmer and Andrew Cawthorne, Editing by Rosalba O’Brien)

Major Venezuelan opposition parties to boycott local polls

By Andreina Aponte and Andrew Cawthorne

CARACAS (Reuters) – Three of Venezuela’s largest opposition parties vowed on Monday to boycott mayoral polls later this year in protest at an election system they say is biased in favor of President Nicolas Maduro’s ruling socialists.

The multi-party Democratic Unity coalition has had a tough 2017, first failing to bring down Maduro in four months of protests that led to 125 deaths, then losing surprisingly to the Socialist Party in a gubernatorial election earlier this month.

That has left the opposition weakened and divided, and Maduro strengthened, despite growing foreign pressure on his government over alleged rights abuses and corruption, and an unprecedented economic crisis that has millions skipping food.

Three heavyweight movements in the opposition – Justice First, Popular Will and Democratic Action – announced on Monday they did not trust the government-leaning election board sufficiently to participate in the municipal polls in December.

Justice First leader Julio Borges, who also heads the opposition-led congress, said authorities cheated in the 2013 presidential election, denied Venezuelans a recall referendum last year, and rigged the Oct. 15 gubernatorial vote.

So instead of going into another “manipulated” vote, the opposition should focus on demanding reforms to the election board in anticipation of next year’s presidential poll, he said.

“The objective remains getting Nicolas Maduro out of power, and in this struggle, the world is with us,” he told reporters.

To the surprise of some, the Democratic Action party also joined the boycott. Its candidates won four governorships in October’s vote and then infuriated many opposition supporters by swearing loyalty to a pro-Maduro legislative superbody.

MADURO: ‘BALLOTS, NOT BULLETS’

Opposition supporters have been split over participating in elections this year. Some say it is the only way to show they are a majority and undermine Maduro, while a growing number argue there is no point in fighting a “dictator” via a system rigged in his favor.

They are pinning their hopes on international action, including U.S. sanctions against Maduro’s government.

Maduro, whose personal popularity has plunged since his 2013 election due to food shortages and runaway inflation, said “sabotage” and “insurrection” were being planned against the mayoral votes.

“I declare myself in battle,” the 54-year-old successor to Hugo Chavez said in a meeting with governors on Monday.

“Those who attack the election system must pay.”

Opposition leaders say the government has long been rigging elections by gross abuse of state funds in favor of socialist candidates, and dirty tricks such the last-minute moving of vote centers in opposition areas for the October ballot.

They have also presented some allegations of ballot-rigging.

However, Maduro insists Venezuela’s system is entirely trustworthy and impossible to hack. It has received international praise in the past, although it was slammed over July’s vote for the Constituent Assembly superbody.

Maduro says the street protests earlier this year were a mask for a U.S.-backed coup plot, and accuses opponents of wanting to oust him by undemocratic means.

“Venezuelans want ballots, not bullets,” said Maduro.

(Writing by Andrew Cawthorne; Editing by Alexandra Ulmer and Rosalba O’Brien)

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