Saturday, November 22, 2008

Debt bill put at $9.3 billion; payments due up to the end of 2009

Caracas Daily Journal (Jeremy Morgan):
The Finance Ministry said payments falling due on Venezuela's foreign and domestic state debt would total $9.3 billion in the period from the final quarter of this year to the end of next year. The figure includes interest payments and amortization of maturing debt.

Payments scheduled for the last quarter of this year amounted to $2.248 billion, of which $893 million was made up of foreign debt, the ministry added.

The government has stepped up borrowing this year, taking total foreign debt in the third quarter to $29.8 billion, up $2.5 billion from $27.3 billion at the end of last year. Domestic debt denominated in local currency reached the equivalent of $13.7 billion, falling from a nominal BsF.35.9 billion at the end of 2007 to BsF.29.7 billion in the third quarter of this year.

Not so long ago, there was talk of the government renewing its strategy of buying back some foreign debt because high oil revenues meant funds were available. The plan to purchase $1.5 billion of debt was never turned into action, and is now said to have been shelved indefinitely. Instead, reports say officials are considering another state debt bond issue, although there are doubts about finding buyers in nervous financial markets.

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