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Goldman Sachs USD2.8 Bn Venezuelan bonds purchase creates uproar

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Demonstrators clash with security forces during an opposition rally in Caracas Venezuela

The humanitarian, political and economic crisis gripping Venezuela has intensified in recent months.

PDVSA's $4 billion of notes due in 2027 gained 0.5 percent to 39.22 cents on the dollar as of 1:31 p.m.in NY, the highest level in four months.

Carrying signs reading "Goldman Sachs deals in Blood Money" and chanting "Hunger bonds Goldman Sachs, We will not pay them back", protestors gathered outside the investment bank's headquarters in New York City for the second day in a row to voice their anger over the bank's purchase of billions of dollars' worth of Venezuelan bonds.

According to Reuters, Goldman Sachs acquired the bonds from New York-based investment firm Dinosaur Financial Group.

He urged "good-faith negotiations" among all Venezuelans, adding that "the main responsibility for showing good faith in any negotiations now is on President Maduro and the government of Venezuela". "We agree that life there has to get better, and we made the investment in part because we believe it will". "The OAS cannot continue to be used by a country for a political lynching against the government of Venezuela, it is regrettable that a group of brother countries has been biased in their appraisals and focus", said Nicaraguan Ambassador Luis Ezequiel Alvarado.

Venezuela's crisis is man-made; a socialist regime introduced awful economic policies and took away human rights.

Bonds issued by Venezuela's national oil company, PetrĂ³leos de Venezuela, or Pdvsa, "have attracted some of world's most sophisticated investors", the New York Times explained.

US officials also said Venezuela's government may not be able to depend much longer on deals like the one with Goldman Sachs.

"Today is an opportunity for us to demonstrate that this commitment remains alive and well relevant to the current plight of our Venezuelan neighbors", Shannon said.

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In Venezuela, Maduro's critics have for two months staged street protests, which have left almost 60 people dead, to demand he hold early elections.

In a statement, Goldman confirmed the purchase, without mentioning how much it paid.

Opposition leader Julio Borges accused Goldman of "aiding and abetting the country's dictatorial regime".

While some member countries of the Organization of American States met on Wednesday to discuss the crisis in Venezuela in Washington, authorities in Caracas continued using tear gas canisters and water cannons to disrupt a massive protest against President Nicolas Maduro.

Goldman Sachs is being heavily criticized for giving Venezuela's government close to a billion dollars.

Likely the most frustrating aspect for Goldman is the fact that they didn't even buy the bonds from the government.

The Venezuelan government hasn't made an global public bond offering in several years since capital markets are essentially closed to it as its economy has shrunk 27% in four years, its oil production has declined rapidly and investors have become increasingly anxious about the growing likelihood of default.

The new assembly has galvanized Maduro's core support in rural Venezuela and among the poor.

It said it "affirms that conflict resolution mechanisms will require all parties to fundamentally rethink the view they have of themselves and the other, in order to transform the now polarized debate into one about the people's common interests and objectives".

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