Chavez ‘Baptizes’ Bolivar Bond With Oil to Pay State Workers

[naaman fletcher]

Why would payments to state workers in the first place?

http://www.businessweek.com/news/2012-08-22/chavez-baptizes-bolivar-bond-with-crude-to-pay-state-workers

Venezuelan President Hugo Chavez presented a bolivar-denominated bond created to pay overdue debt to state workers on television today, “baptizing” one of the papers with crude oil.

The so-called Petro Orinoco bonds, which carry an 18 percent interest rate, are being issued to retirees from the public sector as Chavez prepares to contest elections in October.

“The opposition says that these are worthless, that this is a ploy, but they have a monetary value that pays 18 percent annually,” Chavez said from an oil field in Monagas state. “We need to speed up the pace to pay overdue debts and invent other mechanisms.”

[COLGATE4]

1. Well, I for one can't

imagine why any Venezuelan worker wouldn't be thrilled to exchange his/her unpaid salary for a piece of paper that can be declared worthless by executive fiat. And wait - there's more! - it pays 18% interest a year!!!

[Bacchus4.0]

2. and its only a few percentage points under the inflation rate!! n/t

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