Pdvsa to pay suppliers after fiscal contributions

Financial impositions placed upon Venezuelan state run-oil company Pdvsa by the Executive Office have constrained the oil company to prioritize its fiscal contributions, even above long overdue operating liabilities. 

Sources from the oil sector have informed that Pdvsa will repay debt and make payments to suppliers once it has made its fiscal contributions for fiscal year 2012, which, to date, amount to USD 18.6 billion, even thought they were initially estimated at USD 15.7 billion in the country's budget.

Although Pdvsa has not disclosed any official information about the amount of its liabilities, debts to goods and service suppliers many of which are related to core activities have continued growing, sources from the oil sector informed.  

Payments in dribs and drabs

By the end of 2011, Pdvsa's debts to providers had grown 22% as they jumped from USD 10.13 billion in 2010 to USD 12.37 billion 2011.

Regarding FY2012, oil industry sources explained that "Pdvsa's debt payments have been small, and liabilities are large." They added that efforts have been made to find a payment mechanism different from cash.

Translated by Jhean Cabrera