Venezuela Can Repay Debt Through Q1 2016: Barclays
By Teresa Rivas
On Tuesday, Caracas Capital reviewed the dire state of Venezuela’s finances, as reserves reached their lowest point in a dozen years—and the nation may have very little liquid funds.
Today, Barclays’ Alejandro Arreaza andAlejandro Grisanti also take a look at Venezuela, writing that the start of the high season of the nation’s debt payments, along with higher imports, are likely the main culprits putting pressure on its international reserves.
Overall, Venezuela and or Petróleos de Venezuela (PDVSA) must repay $5.1 billion in maturing debt and interest in October and November. PDVSA is on the hook for the lion’s share of that, as it is scheduled to pay $4.5 billion. Arreaza and Grisanti note that the oil firm historically hasn’t used international reserves to make payments, so it may have been the sovereign repayments that were the main drain.
Looking ahead, they see the country as able to pay its bill at least through the start of next year: