Venezuela Pays Holcim Overdue Cash for Seized Cement Operations
Dec. 1 (Bloomberg) — Venezuela paid Holcim Ltd. the final installment of a total $650 million agreed compensation for seizing the Swiss company’s cement plants in 2008.
The Latin American country paid the Jona-based cement maker $97.5 million that was due almost three months ago, Holcim said in a statement today. Former Venezuela President Hugo Chavez nationalized Venezuela’s cement industry in 2008 citing failures to sufficiently supply the local market. He also seized assets from Cemex SAB and Lafarge SA.
Investors have become increasingly concerned that Venezuela is running out of cash to pay its debt as its foreign reserves fall and its economy heads for its biggest contraction since 2009, according to data from the International Monetary Fund. Venezuela, which imports three-quarters of the goods it consumes, has seen export revenue slump as oil prices tumble.
The country ranks among the biggest losers from the decision by the Organization of Petroleum Exporting Countries last week to let the force of the market determine the price of oil.
To contact the reporter on this story: Patrick Winters in Zurich at pwinters3@bloomberg.net To contact the editors responsible for this story: Simon Thiel at sthiel1@bloomberg.net Andrew Noel, Kim McLaughlin
