“You’re on your own,” says Japan

0
Goodbye, Toyota
Goodbye, Toyota

The Japan Times is reporting that exports to Venezuela will no longer be covered by insurance underwritten by Nippon Export and Investment Insurance.

Basically, the country has become too insecure to be insured. This means that any Japanese company exporting to Venezuela will have to cover the risk of not getting paid for their shipments on their own. This will significantly decrease Japanese exports to Venezuela.

Embarassing? Certainly, but it’s more than that. The Japanese are basically saying that anyone who buys stuff from Japan is likely to not get paid by a country where a normal currency market has simply disappeared, and where the fiscal viability of the State itself is in shatters.

By the way, this comes at around the same time that our Finance Minister has said that, no, the price of gas will not go up. There is no stopping the crazy.

1 COMMENT

  1. Six years ago, in the last oil crash, some jerk wrote:

    “Nippon Export and Investment Insurance, or Nexi, is also considering ending coverage for projects in Venezuela, the person said. The agency insures most Japanese holdings in Venezuela. The company has been holding internal meetings to determine its insurance coverage policy for Japanese investments in Venezuela, Kyoichi Suzuki, the head of the agency’s country risk analysis group, said by phone June 19.”

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=azoc7oRS4mRc

  2. “”… our Finance Minister has said that, no, the price of gas will not go up…” Cuando ellos dicen que no…es por que si…

  3. Everyone will bail out since they will do nothing but lose money and since the Chavistas seem to think the world owes them something for nothing. This is the madness of Fidel Castro shining through all of this economic destruction like a light. People don’t need cars, televisions, and food. They just need to worship the revolution and obey like sheep.

  4. Both governments could care less. But not much less.

    “Japan’s exports to Venezuela, mainly automobiles, came to about ¥34.3 billion in 2014, accounting for 0.05 percent of its overall shipments overseas”.

  5. The japanese , the Koreans and certain private Chinese companies are actively engaged in some large oil Projects in Venezuela , not only because of their expertise but because the financing they provide these projects (Pdvsa is broke and cant put up any money) . The japanese financing has of course been encouraged because of the existence of this Japanese govt insurance , if it dissappears its a sign that the financial risks are too hot to handle . This may make it difficult for japanese or korean or even private chinese companies to proceed with any further financing of Venezuelan projects . This is really a hard blow for the prospects of Pdvsa recovering or maintaining current production levels . This is more than an announcement , this is a real blow to Pdvsa plans. and ultimately to the countries prospects of ever restoring its finances.

Leave a Reply