En Español



Very usefull links



PW
Bookstore





Institutional
links


OPEC
\





 




PW
Business Partners

 


IRAQ OIL
THE FORUM

 


Blogspots

FxHQ Forex News

The Global Barrel

Tiempo Cultural

Gustavo Coronel

Iran Watch.org

Le Blog des
Energies Nouvelles

News Links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

ISSUES....
Inside, confidential and off the record

 

PDVSA: Postponing the inevitable


The ultimate "kicking the can down the road"


Venezuela is about to embark on the ultimate "kicking the can down the road" debt restructuring. It is offering to exchange 5.6 billion dollars in PDVSA bonds amortizing in 2016 and 2017 for bonds amortizing in 2018-2020. At today's prices for the exchangeable bonds, this is equivalent to borrowing at 28% interest, even though the new bonds are collateralized with the shares of CITGO. What happens to the cash flow of the company? It "saves" US$ 1.9 billion in 2016 and 2.4 billion in 2017 (i.e. 4.3 billion in total). But it will have to cough up an additional 2.04 billion in 2018, 1.90 billion in 2019 and 2.56 billion in 2020 for a total of 6.5 billion in the 2018-2020 period. In other words, the net cash flow difference to 2020 is a worsening of 2.2 billion dollars. The company does not have 2-year investment projects with a 28% annual rate of return. The company is buying time, but it is buying very little time at a price it cannot afford.

by Ricardo Hausmann | facebook| Sep. 30, 2016


ISSUES.... 10/ 02/ 2016 - Send Us Your Issues

ISSUES.... Inside, confidential and off the record

Is an independent journalist effort from Petroleumworld, on Inside, Confidential and Off The Record Information, its views are not necessarily those of Petroleumworld

Follow us in : twitter / Facebook

Send this story to a friend Copyright© 1999-2016

Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ stories by anyone provided it mentions Petroleumworld.com as the source. Other stories you have to get authorization by its authors.

Internet web links to http://www.petroleumworld.com are appreciated. Petroleumworld welcomes your feedback and comments,
share your thoughts on this article, your feed. back is important to us!

We invite all our readers to share with us
their views and comments about this article.

 

Write to editor@petroleumworld.com

 

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8 +/ 800x600 pixels


 

 

 





 

TOP

Editor & Publisher:Paul Ohep F./Contact Email: editor@petroleumworld.com

Contact:
editor@petroleumworld.com


CopyRight © 1999-2016, Paul Ohep F.- All Rights Reserved. Legal Information


PW in Top 100 Energy Sites


Technorati Profile


CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved.
This material may not be published, broadcast, posted online, rewritten or redistributed by any type of means, except with permission of the author/s

The information in this web site is proprietary and is protected under United States and International Copyright and Trademark laws. No part of this web site may be reproduced or transmitted in any form by any means whatsoever, except with permission of the author/s..

Petroleumworld encourages persons to reproduce, reprint, or broadcast Petroleumworld articles provided that any such reproduction identify the original source, http://www.petroleumworld.com or else and it is done within the fair use as provided for in section 107 of the US Copyright Law. If you wish to use copyrighted material from this site for purposes of your own that go beyond
'fair use', you must obtain permission from the copyright owner.
Any use of this site or its material, in any form, without the express prior written consent of the author, is prohibited by law and is subject to legal action. Legal Information

Top 100+

Technorati Profile
Fair use notice of copyrighted material:

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from Petroleumworld or
the copyright owner of the material.