Posted on 03/03/2009 12:14:45 PM PST by SwinneySwitch
State corporations' liabilities reportedly exceed USD 8 billion
Economy
While government officials say that they have enough resources to tackle the income gap resulting from falling oil prices, liabilities with contractors and workers continue to grow.
The Venezuelan state is in default with contractors which, in turn have failed to pay their employees. The companies providing services to state-run oil company Petróleos de Venezuela (Pdvsa) and the Venezuelan Guayana Corporation (CVG) are going through the most critical situation.
The boards of directors of the state companies are negotiating with suppliers to settle debts, but the liabilities of both the oil industry and Guayana corporations would be over USD 8 billion.
According to the financial statements of Pdvsa, the holding's debt to suppliers was USD 7.8 billion at the end of the third quarter of 2008. Meanwhile, CVG contractors estimate that delayed payments amount to USD 372 million.
Failure to honor debts comes amidst crumbling oil prices. So far this year, the Venezuelan oil basket has averaged USD 36 per barrel, while financial officials estimated the oil price at USD 60 to calculate FY 2009 budget. The funds the Treasury has received are used to meet the minimum requirements for the operation of the state. In almost two months, the government has disbursed 9 percent of the current fiscal year expenditures, which amount to USD 77 billion.
Oil debt
Pdvsa is the corporation with the largest outstanding debt among state companies. In order to meet obligations, Pdvsa has asked oil suppliers to cut their rates by 40 percent.
President of Pdvsa and Minister of Energy and Petroleum Rafael Ramírez recently said that if local service companies did not review their rates downward, Pdvsa would no longer enter into agreements with them. "We are reviewing the 5-year term contracts because current....
(Excerpt) Read more at english.eluniversal.com ...
Hey, wait! Socialism never fails to deliver.
Just look at all its shining examples around the world.
Wait for it, Venezuela is going to collapse, the timer is ticking now.
Fine,
And we’ll just get a massive influx of illegals from Venezuela
showing up here in Florida.
Great, to go along with the Hondurans, Guats, Nicaraguans, Cubans,oh yeah and Mexicans here in Florida.
Just wait till the Euro’s toss out the Muslims...30 million “religious refugees” headed over here.
When the host dies, parasites must find new victims or die.
What will they do when all of the hosts die?
PdVSA ping!
“....And we’ll just get a massive influx of illegals from Venezuela....”
And why the hell would they come here? Having a crack pot government has only one advantage...no more illegal aliens!
he will have to crank up the printing presses I guess
VeneZimbabwee
How is that socialism thing working? Its quite expensive and then you go and destroy that which pays taxes
bad plan
Yea, and they’ll be bringing their F*** up Socialist carpola with them trying to change us (even more then we are changing ourselves).
“And we’ll just get a massive influx of illegals from Venezuela...”
Alleged politicization
Venezuela’s energy minister and head of PDVSA, Rafael Ramírez, gained attention when he told state oil workers to back President Hugo Chávez or leave their jobs. He also said: “PDVSA is red, red from top to bottom (...) - PDVSA es roja, rojita de arriba a abajo (...)” (Red being the color identified with Chávez’s political party). The opposition said it is illegal for the government to exhort workers to secure Chávez’s re-election in the 3 December 2006 elections.
Chávez defended Ramírez arguing that public workers should back up the “revolution”. He also said that “PDVSA’s workers are with this revolution, and those who aren’t should go somewhere else. Go to Miami”. Furthermore, Chávez stated that Ramírez should give the same speech to oil workers 100 times a day.[5]
http://en.wikipedia.org/wiki/PDVSA
If Venezuela explodes there will be much blood between Hugo supporters and normal folk.
Loads will flee here to get away from the killing.
Sooner or later the money stream slows to a trickle but the debts just begin to come in. Hasta la vista, Chavez....
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