Pdvsa's debt spikes 150% in five years
By the end of 2012, the liabilities of Venezuelan state-owned oil company Pdvsa's stood at USD 40 billion
By the end of 2012, Pdvsa's debt accounted for USD 40 billion. Over the last five years, the company's debt has skyrocketed 150%. By 2007, the debt amounted to USD 16 billion.
Bond sales and loans have resulted in increased liabilities. The company's debt was reported to have jumped by 15% in 2012 with compared to 2011, when it hit USD 34.8 billion.
In 2012, Pdvsa sold bonds to the Central Bank of Venezuela (BCV) for USD 3 billion dollars. In this way, the oil company repaid a portion of its debt to the financial institution.
However, Pdvsa's obligations with the central bank continue growing as the former keeps on taking debts from the latter. BCV's financial aid to Pdvsa ended at USD 38 billion in 2012, according to BCV data. Yet, the oil company's balance sheet does not itemize such financial aid.
Pdvsa's balance sheet also reported that the oil company has raised funds from the Chinese Development Bank, Credit Suisse, and Venezuelan state-run banks.
In 2012, Pdvsa signed a loan agreement with China for USD 500 million for the purchase of oil goods and services. By the end of 2012, the oil company had received USD 271 million under the deal.
Similarly, the Venezuelan oil company entered into a credit agreement with Credit Suisse, amounting to USD 1 million for the modification and expansion of Pdvsa's refinery in Puerto La Cruz, northeast Venezuela. By the end of 2012, Venezuela had received USD 478 million under this agreement.
Translated by Jhean Cabrera
At the recent UN climate summit President Nicolás Maduro gave a speech on global warming highlighting the fact that "Capitalism has ignored over decades nature's capacity to load and recover," and, accordingly, "if we want to change climate, we need to change the system."