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Venezuela Defaults Again

Venezuela Defaults AgainVenezuela Defaults Again

Crisis-wracked Venezuela has defaulted on two bonds, failing to make a $183 million coupon payment, ratings agency S&P said. The agency said OPEC-member Caracas failed to make the payment within a 30-day grace period on global bonds due in 2023 and 2028, AFP reported. “In line with our criteria for timeliness of payments, we are lowering the issue ratings on these bonds to “D” from “CC,” the agency said. Falling oil prices and corruption have decimated the economy under socialist President Nicolas Maduro, leading to hyperinflation and chronic food and medicine shortages in the oil-rich but cash-poor South American nation. Global ratings agencies already had declared Venezuela and state-owned oil company PDVSA to be in “selective default” due to late payments on multiple bond issues. PDVSA is Venezuela’s primary source of income. Key bosses at the oil company have been sacked and arrested on corruption charges in what analysts see as a purge by Maduro to consolidate power ahead of next year’s elections.

 

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