Russia has given consent for Venezuela’s $3.15 bln debt restructuring, allowing the country close to default find some wiggle room.
Yesterday’s agreement lets Venezuela pay minimal amounts in the coming 6 years. Just a day before that rating agencies started to make noise over Venezuela’s missed transfers on debt interest. Overall debt of the South American country to external creditors is $140 bln.
At the start of the week government met with the creditors in the capital to talk over possible restructuring, however, participants of the event said that the state officials made no definite proposals.
The government had begun payments of $200m and intends to further carry out its obligations, according to the state officials.
Venezuela is taking steps to rearrange its foreign debt for the good of its people, said Simon Zerpa, Finance Minister of the country after the agreement with Russia. Latin America’s oil giant has always used its oil riches to keep economy afloat and to provide funds for the government.
The fall in oil prices has aggravated the situation in Venezuela, while the US and the EU initiated sanctions for repressive actions.