Central Bank loans to Pdvsa stand at USD 26.5 billion in 2012

Since 2007, Venezuelan state-owned oil company Pdvsa has relied on public institutions to obtain financial resources that will enable it to carry out plans or programs assigned by the central Government, being the Central Bank of Venezuela (BCV) its foremost contributor. 

According to BCV data, by August 26, 2011, financial aid to Pdvsa amounted to USD 12.9 billion. One year later, such figure increased to USD 26.5 billion (105%).

Although the Venezuelan oil basket has averaged USD 100, oil revenues are not enough, considering the growing amount of liabilities.

Far beyond its core activities (exploration, production, refining, and trade), the state oil company has to fund housing programs, welfare programs commonly known as "missions," the payment of labor liabilities, investments in the so-called mining arch in Guayana (south Venezuela) commonly known for its high concentrations of gold and minerals, and the new investment program directed towards the basic industries in Guayana. Thus, the financial needs of the oil company are overwhelming.

The central bank is not the only entity providing financial aid to Pdvsa. Bills and notes have been channeled by financial institutions such as the National Treasury Office, the Social and Economic Development Bank (Bandes), Banco de Venezuela, and Banco del Tesoro.

Data kept by the oil industry reveal that only in the first four months of the year Pdvsa received USD 2.5 billion in loans from public banks.

Translated by Jhean Cabrera