CARACAS (Reuters) – Venezuela’s state-owned oil company PDVSA is preparing to pay holders of its 2020 bond some $950 million this month, after failing to make interest payments on most other bonds this year, sources at the company and in the local financial sector said.
PDVSA has fallen behind on more than $7 billion in principal and interest payments since the end of 2017, according to market sources and Refinitiv data, as an economic crisis in Venezuela has worsened.
But cash-strapped PDVSA has stayed current on the 2020 issue, which is backed by 50.1 percent of shares in U.S. refining network Citgo.
“Quevedo gave his approval to arrange this payment,” said one person at PDVSA familiar with the plans, referring to Manuel Quevedo, Venezuela’s oil minister who is also president of PDVSA. “It will be paid in full.”