Venezuelan gov't places 92% of 2012 debt

Venezuela's Ministry of Planning and Finance keeps issuing debt bonds, as government bodies' urgent financial needs increase.

Official figures reveal that bonds worth USD 20.11 billion were issued until October 11, meaning that out of the total scheduled indebtedness (USD 21.97 billion), 92% has already been placed.

The Venezuelan Central Government initially had estimated indebtedness at USD 14.99 billion. Then, additional USD 7 billion were passed by the Venezuelan National Assembly (AN) through the Ancillary Indebtedness Law back in July for payment of pensions and labor liabilities.

Think tank Síntesis Financiera in its report El Tesorero (Treasurer) suggested indirect indebtedness (through bonds guaranteed by the Republic) could take place. Further, debt could be issued through other public bodies, as these operations are not restricted under the Annual Indebtedness Law.

Indeed, the Executive Office adopted legal reforms in order to issue indirect public debt. Securities worth USD 4 billion have been issued through this additional means.

Translated by Andreína Trujillo