Venezuela oil firm de­lays pay­ments

China Daily (USA) - - BUSINESS -

Venezuela’s state oil com­pany re­port­edly is de­lay­ing $404 mil­lion in bond pay­ments in an ap­par­ent sign that the oil gi­ant’s fi­nan­cial woes are wors­en­ing amid the slump in petroleum prices. A JPMor­gan an­a­lysts’ note said on Mon­day that PDVSA is tak­ing ad­van­tage of a grace pe­riod to de­lay pay­ments on 2021, 2024 and 2035 bonds. The terms of the bonds per­mit PDVSA to put off pay­ment for 30 days be­fore be­ing con­sid­ered in de­fault. An­a­lysts do not ex­pect the com­pany to de­fault, but the de­lay high­lights cash flow prob­lems and raises the specter of non-pay­ment.

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