Venezuela's PDVSA, in default, says total debt fell in 2018
Reuters
Published Jan 22, 2019 06:50PM ET
Venezuela's PDVSA, in default, says total debt fell in 2018
CARACAS (Reuters) - Venezuela's state-run oil company PDVSA [PDVSA.UL] said on Tuesday its debt fell 5 percent in 2018 from a year ago to $34.6 billion, though it remains in default on most of its bonds as crude output has slumped to 70-year lows in an economic crisis.
PDVSA, which is short for Petróleos de Venezuela, S.A., has not paid interest on most of its bonds since the end of 2017, and together with Venezuela's government has accumulated nearly $8 billion in late interest payments. It has remained current on its 2020 bond, whose collateral is its U.S. oil refining subsidiary Citgo.
Venezuela blames U.S. sanctions for the payment problems. But critics of the socialist government say President Nicolas Maduro's mismanagement of the economy and the OPEC nation's oil reserves are the root of the country's financial crisis.
PDVSA's announcement, in the form of an advisory in a local newspaper, said it owed $24.7 billion to bondholders, down from $25.1 billion in 2017.
Two subsidiaries accounted for most of the decline: PDV Holding, which owns Citgo; and the Venezuelan Petroleum Corporation (CVP), which manages PDVSA's joint ventures with foreign companies.
While U.S. sanctions bar holders of PDVSA and Venezuela bonds from negotiating a possible debt restructuring, some investors are moving toward legal action to get the two parties to pay. Last month, a group of creditors demanded Venezuela make $1.5 billion in payments on its 2034 bond.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.