ASSESSMENTS

Venezuela's Expensive Friendships

MIN READJan 2, 2016 | 14:03 GMT

Venezuela's President Nicolas Maduro (C) addresses supporters in Caracas on Dec. 15.

(FEDERICO PARRA/AFP/Getty Images)

When Venezuela's government forged an energy discount deal with Cuba 15 years ago, its government was eager to solidify ties with a leftist ally. In the ensuing decade it also inked oil-for-loans deals with China that helped avert default. But energy prices have fallen, Caracas is running out of funds, and everyone knows that Chinese financing is not a long-term solution. At some point Venezuela is in for a financial reckoning. The question is, just how much of its post-Chavez foreign policy will survive the debt restructuring process?...

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