Venezuela's domestic debt skyrockets 64% in 10 months

Planning and Finance Minister Jorge Giordani recently stated that Venezuela's indebtedness strategy in 2012 has primarily focused on the domestic market. Data from the finance ministry reveals that domestic debt climbed from USD 35.8 billion to 58.7 billion (64%) in 10 months.

Beatriz Bolívar, the head of the Public Credit National Office, said to the National Assembly Finance Committee that by the end of October, the central government's total debt amounted to USD 102.3 billion, a 29% increase in 10 months. By December 2011, the debt amounted to USD 79.2 billion. 

Meanwhile, foreign debt stands at the same level recorded in 2011 (USD 43.5 billion) in the absence of further issues this year. 

The government has taken on debts amounting to USD 22 billion this year, with domestic issues only.

Venezuela's debt

Bolívar said the country's debt accounts for 28% of the gross domestic product (GDP). Notwithstanding, she noted, "(state-run oil company) Pdvsa's debt stands at USD 35-40 billion and, therefore, the debt (Government, Pdvsa and government agencies) amounts to 40% of GDP."

"The level is quite below international standards and that of other countries." Bolívar added, "The Republic pays off its debts in due time."

Reports from investment financial institutions show that the public debt may attain 46% of GDP if the loans granted by China are included.

Translated by Jhean Cabrera