A worker counts Venezuelan bolivar notes at a gas station of Venezuelan state oil company PDVSA in Caracas

Venezuela owes billions to bondholders this week

$1.2 billion

Venezuela’s state-run oil company Petroleos de Venezuela (PDVSA) owes $985 million on its 2020 bond today (Oct. 27) and $1.2 billion payment on Nov. 2—and investors fear the cash-strapped government doesn’t have enough the funds.

Published   |  Photo by Reuters/Marco Bello
A worker counts Venezuelan bolivar notes at a gas station of Venezuelan state oil company PDVSA in Caracas
$1.2 billion

PDVSA has begun making today’s bond payment, which covers interest and principal costs, but missed another one earlier this month.

A worker counts Venezuelan bolivar notes at a gas station of Venezuelan state oil company PDVSA in Caracas
$1.2 billion

Venezuela’s socialist government has mostly paid international creditors on time, even as it goes through a political and economic crisis.

A worker counts Venezuelan bolivar notes at a gas station of Venezuelan state oil company PDVSA in Caracas
$1.2 billion

To meet payments, Venezuelan president Nicolas Maduro has borrowed money from China and Russia—and cut imports of food, even as many in the country starve.

A worker counts Venezuelan bolivar notes at a gas station of Venezuelan state oil company PDVSA in Caracas
$1.2 billion

Maduro has reasons to avoid a default. Creditors could try to take control of national oil assets, and refinancing would be difficult due to recent US sanctions.

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