Member Spotlight

Refugee bonds could help in Venezuela’s humanitarian catastrophe


Financial Times  | Fri, May 18, 2018

by Gary Kleiman


Gary Kleiman is co-founder and senior partner at Kleiman International.

Regional markets offer possibility for private sector initiatives

Emerging market fund managers still invested in Venezuela are no longer just focused on debt restructuring.

As the country approaches elections on May 20 in the wake of self-inflicted economic collapse, more than 1m migrants and refugees have already fled to neighbouring countries to roil their financial markets with the prospects of millions more to come, according to a study by the Washington-based Center for Strategic and International Studies.

Over 500,000 Venezuelans are in Colombia in advance of the presidential race there, Ecuador and Panama have 250,000 each, Chile and Peru have 150,000 each and there are 50,000 in Brazil.

Latin American stock markets outperformed rival regions on the MSCI index through the first quarter, but the influx’s humanitarian and fiscal costs have yet to fully register.

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