FX.co ★ Venezuela refuses to pay debts to Panama

Associated Press citing Venezuelan Foreign Minister Elias Haua says that Venezuela denies paying back the debts to Panama. The official says that 90% of the debt which clocks in at 1 billion U.S. dollars is fraudulent.
The minister acclaimed that most of goods bought at Panamanian companies on credit have never been shipped to Venezuela. Considering this fact, Haua promised to file criminal charges.
The refusal to service the debt emerged amid escalated tensions between Karakas and Panama. In the midweek, Venezuela President Nikolas Maduro accused Panama’s authorities of attempt to invade his country and announced rupture of relations. The reason for this was Panama’s President Rickardo Martinelli push for an Organization of American States-sponsored mediation in the Venezuelan crisis.
Commenting Maduro’s actions, Martinelli expressed the hope Venezuela's break in relations would not affect payment of its debts to Panama. The President of Panama explained that 1 billion dollar debt is the result of imports of goods though Panama’s free trade zone named Colon. Besides, he says that Caracas owes money to Copa airlines located in Panama. Meanwhile, Colon’s administration assessed Venezuela’s debts at 2 billion dollars.
According to AFP, the debt is the result of Venezuela’s inability to pay for Panamanians goods with the dollars. That was all because the country adopted currency limits introduced by its former President Ugo Chaves.
The tensions between Panama and Venezuela escalated amid street riots in Venezuela that started early February. The residents barricade demanding better economic situation. In particular, they are complaining about shortages of some staples goods and life-long deflation. At least 20 people died during these clashes with government.