Threats, Delays and Conspiracies Dog Venezuela Debt Holders
- Coupon payments on two bonds delayed to this week; one pending
- Venezuela’s government blamed the U.S. Treasury for the delay
An attendant uses a handpump to refuel a vehicle in a Petroleos de Venzuela SA gas (PDVSA) station
Photographer: Wilfredo Riera/BloombergVenezuela’s state-owned oil company Petroleos de Venezuela SA can’t seem to organize itself to pay its coupons on time, raising concern the cash-strapped driller may end up defaulting by mistake.
The company had four bond-interest payments totaling almost $540 million due last week. One it paid, two payments were delayed until this week, while PDVSA said it would have to use a grace period for the fourth. The company’s chairman Eulogio Del Pino, also the country’s oil and energy minister, appeared on a late night chat-show on state television where he blamed the delay on Citigroup Inc., but didn’t explain why the grace period was needed for the 2035 bond.