Pdvsa allocates USD 12.9 billion to parallel funds

Pressure from the Venezuelan government on state-run oil company Petróleos de Venezuela (Pdvsa) is not limited to transfers of financial resources to the National Development Fund (Fonden) only, but it also includes allocations to other funding mechanisms.

Pdvsa's numbers on its contributions to social development show that between 2010 and the first semester of 2012, the state-run oil holding contributed USD 12.9 billion to four parallel funds: Miranda, Bicentenary, Security, and Sports.

Out of these four mechanisms, the Miranda Fund is the one that has been allocated the largest amount of resources by Pdvsa. Since 2010, the fund has received USD 11.4 billion, and only in the first semester of 2012, it received USD 2 billion.

The Miranda Fund is used by the Venezuelan central government as a funding source for additional credits. Indeed, the fund, besides deposits from Pdvsa, manages the surplus income from previous fiscal years, plus additional tax contributions.

In addition, Pdvsa has allocated USD 924 million to the Bicentenary Fund; USD 539 million to the Security Fund; and USD 125 million to the Sports Fund.
These allocations from Pdvsa to the government's parallel spending mechanisms may rise, taking into account that there are other funds managed by the Treasury, which also receive financial resources from Pdvsa.

Pdvsa reports also show that by the end of June 2012, Fonden has been allocated USD 7.6 billion.

Translated by Andreína Trujillo