Venezuela's domestic debt service at USD 22 billion in 2013-2014
Payments to both domestic and foreign debt at USD 33.9 billion in two years
Since 2009 the Venezuelan Government has been falling into more debts. This has exerted an impact on the state's accounts considering the fact that more resources need to be used to pay debts at home and abroad.
Based on the Finance Ministry's data, total debt service in 2013-2014 will amount to USD 33.9 billion, USD 22 billion of which belongs to the domestic debt (65%). This is the result of the allocations made over the last three years.
Domestic liabilities climbed (306%) from USD 14.1 billion by the end of 2008 to USD 57.3 billion by September 2012.
During the presentation of the Budget Law for fiscal year 2013, Planning and Finance Minister Jorge Giordani said the local market has been determined as the government's first finance source. Special instruments in local currency have been designed for this purpose, therefore reducing the risk of the total debt portfolio."
Allocations to the foreign debt in 2013-2014 may amount to USD 11.7 billion according to the ministry.
By the end of September 2012, the foreign debt accounted for USD 43.5 billion, similarly to that of 2011, but 46% above the figure reported in 2008 (USD 29.8 billion).
Translated by Jhean Cabrera
President Nicolás Maduro is not only the heir to the throne, but also to an economic crisis which demanded urgent measures to rectify the course. The crisis showed up in two aspects: a 50% inflation estimate, and shortage of staples ranging between 70% and 98%. These issues might hit the President's poor popularity; considering his feeble electoral victory of 1% over his challenger.