I do not know what court would decide this matter,but Goldman Sachs is buying from Venezuela the PetroCaribe contract with the DR but I am unsure if anyone standing in the shoes of Venezuela has the right to vary the contract .
What's to decide?
Venezuela has sold its debt. Unless the contract had a no assignation clause, it is all perfectly legal and done all the time.
The contract can only be varied by its terms that allow it, or by mutual assent of the holder of the contract and the DR, or by a court of competent jurisdiction. While the DR had the option of sending goods for payment...that option is, or was, held by the Venezuelans, and now that the debt has been sold....GS is now the holder of the option and highly unlikely to entertain beans for payment.
If I am reading this correctly the price paid to Venezuela immediately is 40% of the value of the current debt . From memory the DR has to pay 50% of the oil purchases within a month or so and the rest is paid 25 years later with an interest rate of 1% , The DR is up to date with its payments that are due monthly so really GS is paying 40% of the amount that is owed in the future . I doubt if there would be any silly clauses making the DR liable to pay all debt immediately if Venezuela sells its its interest in the contract so I see little harm for the DR especially with oil prices at such a low level . But we maybe buying all our oil from outside Venezuela in the future ,,it will be easier to refine
That silly clause you refer to is an acceleration clause. It is, or can be triggered, if the debtor misses a payment or payments, and is at the option of the holder of the debt.
Petrocaribe will likely continue, But.....only as long as the present government has control. The opposition has already declared they will cancel Petrocaribe if they should gain power. The next elections are scheduled for December 2015...if the country does not implode prior.
Respectfully,
Playacaribe2