US Sanctions Restricting Venezuela’s Access To International Credit
As US sanctions imposed last month, restricting the ability of President Nicolás Maduro’s government and its oil company, Petróleos de Venezuela, S.A. (PDVSA), access to international credit, takes an even tighter hold, the Government is finding itself in an increasing tighter spot.
This as the State oil company PDVSA, now a ragged shadow of its former self: overburdened, underfed, is in hock to Russian and Chinese creditors.
Oil has for decades being Venezuela’s cash cow, and as production declines and much of what is exported goes to repay billions of US dollars in loans and as oil revenues decline, there is a real chance of default. BM