, Columnist
Venezuela's Oil and Debt Gamble
Venezuela plans to sell $5 billion in bonds issued by state oil company Petroleos de Venezuela,
or PDVSA and use the money to repay bondholders,
importers, airlines, food companies, carmakers, oil-production suppliers and other creditors.
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Beware the things a mismanaged oil-rich country might do when pressed for money. This rule applies in spades to Venezuela under President Nicolas Maduro.
His administration's plan to sell $5 billion in bonds issued by state oil company Petroleos de Venezuela, or PDVSA, is an apt example. Maduro needs money to repay bondholders, importers, airlines, food companies, carmakers, oil-production suppliers and other creditors. Loading debt onto the company is a sure indication of desperation amid a cash crunch, courtesy of 15 years of failed economic management by Maduro's leftist mentor, the late Hugo Chavez.