Venezuela's foreign debt payments up 48% in 2013
Economic research firm Ecoanalítica estimates that Venezuela's oil revenues will not be sufficient in 2013
Think tank Ecoanalítica's last report on economic perspectives warns that Venezuela's oil revenues will not be enough to meet liabilities arising from the foreign debt and imports.
"Considering our estimates for next year, the oil price will stand at USD 104 per barrel whereas export will account for 2.22 million of oil barrels per day. Notwithstanding, we have observed that oil revenues will not be sufficient to meet domestic US dollar demand," the report explains.
Likewise, a rise in the amortization of payments and interests deriving from the foreign debt will lead to a 48% jump (USD 18.4 billion) in expenditure with respect to 2012.
Furthermore, if all pending payments related to imports and services are included, the aforementioned amount climbs to USD 87.4 billion while only USD 75.5 billion will be received through oil exports after Venezuelan state-owned oil Company Pdvsa pays all its foreign bills.
Ecoanalítica believes that if the Government refrains from taking on further liabilities in US dollars, "the adjustment is made via private imports and "it all seems that the import boom reported this year will be hard to keep up in 2013. Thus, devaluation and restrictions to obtain US dollars through Cadivi will be ready to be triggered."
Translated by Jhean Cabrera
Cristian Fonseca, a businessman in La Candelaria district downtown Caracas, was doing the accounts in his small shop office on Sunday December 21, 2008. The Christmas shopping season kept him working late hours into the night. It was around 11 p.m. and his phone rang. A friend broke the bad news to him over the telephone.