Economics
Venezuela State Oil Company Says It Made Vital Bond Payment
- PDVSA says it paid principal due on amortizing 2020 bonds
- Doesn’t mention interest payment, which has grace period
How Venezuela Has Managed to Avoid Sinking Into Default
This article is for subscribers only.
Venezuela’s state-run oil company said it transferred the funds to make an $842 million principal payment on its bonds due Friday, overcoming the first of many hurdles the country will face in coming days as it seeks to avoid sinking into default.
The announcement spread a sense of relief to investors in the bond market, who drove up Venezuelan asset prices across the board Friday. A second big payment is due Nov. 2, and the country’s decision to disburse the cash for today’s payment indicates that it likely intends to meet that one too.