Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 06CARACAS3375, BRV TO ISSUE BONOS DEL SUR

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06CARACAS3375.
Reference ID Created Released Classification Origin
06CARACAS3375 2006-11-13 15:28 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Caracas
VZCZCXRO6406
RR RUEHAO
DE RUEHCV #3375/01 3171528
ZNR UUUUU ZZH
R 131528Z NOV 06
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC 6975
INFO RUEHAC/AMEMBASSY ASUNCION 0719
RUEHBO/AMEMBASSY BOGOTA 7112
RUEHBR/AMEMBASSY BRASILIA 5816
RUEHBU/AMEMBASSY BUENOS AIRES 1511
RUEHLP/AMEMBASSY LA PAZ 2401
RUEHPE/AMEMBASSY LIMA 0654
RUEHMN/AMEMBASSY MONTEVIDEO 0879
RUEHQT/AMEMBASSY QUITO 2487
RUEHSG/AMEMBASSY SANTIAGO 3819
RUEHAO/AMCONSUL CURACAO 1060
RUEHGL/AMCONSUL GUAYAQUIL 0709
RUEATRS/DEPT OF TREASURY
RUCPDOC/DEPT OF COMMERCE
RUMIAAA/HQ USSOUTHCOM MIAMI FL
RHEHNSC/NSC WASHDC
UNCLAS SECTION 01 OF 02 CARACAS 003375 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
TREASURY FOR KLINGENSMITH AND NGRANT 
COMMERCE FOR 4431/MAC/WH/MCAMERON 
NSC FOR DTOMLINSON 
HQ SOUTHCOM ALSO FOR POLAD 
 
E.O. 12958: N/A 
TAGS: ECON EFIN VE
SUBJECT: BRV TO ISSUE BONOS DEL SUR 
 
REF: CARACAS 0659 
 
1.  (U) SUMMARY:  The Ministry of Finance (MF) announced the 
imminent issuance of the long-awaited "Bonos del Sur" on 
November 7.  The bonds, issued jointly by Venezuela and 
Argentina, will be worth USD 1 billion and are expected to 
start trading the week of November 13.  The bonds will likely 
be met with enthusiastic demand from Venezuelan purchasers, 
seizing on this mechanism to avoid exchange controls that 
prevent many from converting their bolivars to dollars.  END 
SUMMARY. 
 
2.  (SBU) The MF announced the long-awaited, though 
often-postponed, issuance of the "Bonos del Sur" on November 
7.  The bonds will be a combination of the BRV Secured 
Interest and Principal Certificate maturing on April 6, 2017 
(USD 500 million), the Argentine Bonden 12 expiring on August 
3, 2012 (USD 300 million), and the Argentine Bonden 15 
expiring on October 3, 2015 (USD 200 million).  All three 
instruments are dollar-denominated.  The two Argentine bonds 
can be converted into either dollars or pesos, whereas the 
Venezuelan portion can only be converted into bolivars 
(though devaluation-safe as they are denominated in dollars). 
 (Comment:  This will probably affect demand for the 
Venezuelan bonds in the secondary market as they will pay 
interest in bolivars and can only be converted into bolivars, 
thus while they provide a decent hedge against inflation and 
devaluation, they do not provide the much desired outlet to 
dollars that most Venezuelans seek.  End Comment.)  The 
purchaser will get a combination "Bono del Sur" at the time 
of issuance, but they can then be split, with the Argentine 
portions sold on the international market for dollars. 
(Note: During a lunch with econoffs on November 8, a sector 
contact received a steady stream of calls about the bonds and 
noted that, while the bonds were not yet issued, people were 
already trading them on the local market.  End Note.) 
 
3.  (SBU) Given the current demand for foreign exchange and a 
parallel rate in excess of 2900 bolivars/USD, it is unlikely 
that this issuance will meet the private sector's demand for 
dollars.  Unlike previous bond issuances, this announcement 
did not seem to affect the parallel rate, implying that the 
demand for dollars is such that USD 500 million in 
dollar-denominated assets hardly dented demand.  Liquidity 
has increased 40.6 percent in 2006 (and 63.9 percent year on 
year) and shows no signs of abating.  Delays in getting 
Commission for the Administration of Foreign Exchange 
(CADIVI) approvals and limitations placed on goods and 
services eligible for approvals mean that there are thriving 
parallel and black markets for dollars.  One contact involved 
in the parallel exchange business recently estimated that the 
parallel market converts USD 20-30 million daily and that 
business recently had been picking up (even as the bolivar 
lost value).  (Note: CADIVI has been approving approximately 
USD 100 million daily.  End Note.) 
 
4.  (SBU) COMMENT: As with previous issuances, it is likely 
that this one will be over-subscribed.  While historically 
the MF attempted to favor "small investors" over large 
institutions when assigning the rights to purchase these 
bonds, the process today is sorely lacking in transparency. 
The bonds are valued at the official exchange rate of 2150 
bolivars/USD, but will probably be sold at an implied rate of 
between 2400 and 2600 to the dollar.  This allows the BRV to 
make money on the arbitrage between official and implicit 
rates.  Of course, the lucky purchasers can then sell these 
bonds at the parallel rate of 2900/USD, so it works out well 
for all parties involved.  As with the Argentine bonds 
purchased and resold earlier this year (see reftel), it is 
likely that the "winners" of this process will be successful 
less for their merit than their political loyalty and 
 
CARACAS 00003375  002 OF 002 
 
 
financial largesse with certain BRV officials.  We expect 
additional "Bonos del Sur" issuances to follow in 2007.  END 
COMMENT. 
BROWNFIELD