Venezuela's domestic debt payments total USD 18.5 billion in 18 months
Between 2012 and 2013, the foreign debt service is estimated at USD 9.4 billion
Since 2009, Venezuela's debt has been rising, thus hitting the country's accounts, as the Executive Office has to allocate more funds for future public debt payments.
Data disclosed by the Ministry of Planning and Finance estimated at USD 27.9 billion the debt service to be paid by the Central Government in a year and a half. According to the ministry, the heaviest burden will be the domestic debt service.
At the end of the first quarter, the Ministry of Planning and Finance spent USD 3.3 million in payments of domestic debt. For the rest of 2012 and throughout 2013, the debt service will be USD 18.5 billion. This is the result of the transactions performed in the last three years.
Given the increased issuance of debt bonds at the end of March, the balance of the domestic debt hit USD 42.9 billion (VEB 184.5 billion), an increase of 58% in 12 months.
Although the average oil price remains above USD 100 per barrel, Hugo Chávez's government still issues debt bonds to increase their cash flow.
José Vicente Rangel clearly said: "We are not conducting negotiations threatened with a gun in the head." He warned behind closed doors in the midst of the social upheaval occurred during the oil strike in 2002 and 2003. Dissenting Timoteo Zambrano answered back that no other option was available: "The thing is that otherwise, you do not negotiate."