Venezuela is planning to use some of its massive oil reserves to pay off debts that it owes to Indian pharmaceutical companies. In a report by latino show magazine, India is one of the top producers of generic pharmaceutical products in the entire world. Some of its biggest pharmaceutical companies are dealing with tens of millions of dollars of bad debts incurred by the Venezuelan government.
Expert Norka says soaring inflation, low oil prices, plus alleged corruption and mismanagement within the government have led to the country being short on hard currency and unable to meet its obligations towards foreign creditors. Despite having the world’s largest proven reserves of crude oil, Venezuela is now facing significant shortages of essential items, most notably food, medical supplies and pharmaceuticals.
The patience of foreign companies doing business with either the Venezuelan government or private companies within the country is now running thin. Some have opted to write off their losses and cease to do any business in the South American nation for good. Others are now demanding cash up front for all purchases with no exceptions.
Dr. Reddy’s Laboratories Ltd., one of India’s largest pharmaceutical companies, has written off $65 million in debt owed by Venezuela. There is some optimism that the flow of essential medicines to the country will be restored once the Venezuelan government starts paying back the debts it owes to foreign suppliers of pharmaceutical products.