Economy
In the face of oil prices around USD 50, the Executive Office estimates that at the end of 2009, input of state-run oil holding Petróleos de Venezuela to the Treasury will total USD 20 billion.

Such amount mirrors a 47.7 percent plunge compared with USD 38.3 billion in 2008. However, last year, oil prices averaged USD 86. In the 2010 Budget Bill, the government envisaged the revenues for 2009. Note in this context that Pdvsa's contribution has been hit by lower output and oil prices performance.

A breakdown of the oil input shows that royalties will stand at USD 13.5 billion, which means a drop of 51.6 percent, relative to USD 28 billion in 2008. The contribution via income tax is estimated at USD 4.4 billion, compared with USD 8.3 billion last year, resulting in a drop of more than 47 percent. Dividends will account for USD 2 billion, a level similar to that recorded in 2008.

Something additional
While the 2009 input is lower than that of 2008, with regard to the goal set this year, exceeding funds would be recorded.

Following the revision of the 2009 budget, the government resolved to lower the benchmark oil barrel from USD 60 to 40; therefore, Pdvsa's contribution went from USD 35.9 billion to USD 17.6 billion.

The gap was bridged with an additional amount of taxes and growing indebtedness. The government forecast shows that in the face of a contribution of USD 20 billion, at the end of the day there will be a surplus of USD 2.3 billion, because the goal set last March will be overtaken.

No matter the extra income by the Treasury, the oil industry is looking for financing. Thus far this year, it has issued papers for USD 8 billion apart from the existing debt at USD 15 billion for the year ended 2008.

If all that was not enough, now the Central Bank of Venezuela can buy bonds from Pdvsa and the oil industry is waiting for financing from Japanese and Russian banks. As for Japan, a payment of USD 1.5 billion is next to be made.

Translated by Conchita Delgado

Mayela Armas H.
EL UNIVERSAL