PDVSA: Needs more time
PDVSA seeks more time to pay debt
Venezuela's state-run oil giant PDVSA needs more time to pay $4.4 billion in government debt and is seeking to restructure its obligations to service companies.
Company reports show that PDVSA signed five Treasury notes last year at a rate of 1.96%, due for repayment starting in July at a rate of $880 million per month.
Lower energy prices due to the global economic slump have hit PDVSA hard, a Reuters report said.
But last year PDVSA needed about $5 billion in state assistance, according to its official records.
The company also had some $7.5 billion in debts to contractors ranging from oilfield drillers to small transport companies at the end of last year, although it has now paid down about $2 billion, according to the company's accounts.
PDVSA is now seeking to negotiate a large reduction in the amounts due.
This month, PDVSA launched a $3 billion 2011 bond to help pay off its debts to service providers.
The zero-coupon bond is expected to raise about $5.5 billion for the company.