13 de diciembre de 2016 14:30 PM
Debt service on Venezuela’s bonds (including those of state-owned corporations Pdvsa and Elecar) in 2017 will sum USD 9.4 billion, according to a report by economic firm Torino Capital.
The experts argued that such figure is similar to 2016’s (post-swap) USD 9.1 billion and explained that debt service will remain around USD 9 billion in 2018 and 2019, before rising above USD 11 billion in 2020.
“Debt service in 2017 is concentrated in the month of April, when the nation must pay USD 2.9 billion (USD 2.1 billion in Pdvsa principal and the remainder in interest), and in October and November, when it must pay USD 3.5 billion (USD 2.0 in Pdvsa principal and the remainder in interest),” the firm added.
Similarly, the experts highlighted that this last part of the year does not look that different from what it would have looked like without the swap.
They reported that Pdvsa saved USD 928 million in 2017 November amortization due on November but must now pay USD 842 million in the first tranche of 2020 amortizations in October. “There are also three months (February, May and August) when the country must honor more than USD 700 million in coupon payments,” they continued.
Likewise, the experts claimed that looking forward to the years ahead, there are three months in 2018 to keep an eye on in terms of heavy debt service. The first one is April, when coupon payments on sovereign and Pdvsa debt coincide with an Elecar amortization of USD 650 million to generate total payments of USD 1.4 billion. August, October and December, they maintained, also have relatively heavy payment schedules of USD 1.8 billion, USD 1.6 billion and USD 1.1 billion, respectively. The 2018 peaks are smaller than those of 2017 in terms of total debt service due within one or two month interval.
“The heaviest concentration of payments in the near future occurs in October of 2019, when the country must pay USD 5.6 billion within a two-month period,” Torino concluded.