The club of the Red Fat men in actionA superb blog called Caracas Gringo is still a well kept secret. The author presents good information and writes excellent English. It combines financial savvy with petroleum industry knowledge, not a frequent combination. (or are there two authors instead of one?).
Anyway, this excerpt (below) of PDVSA's mounting debt is of special importance for its potential future partners to analyze. For the Chinese this could be good news, as it opens a door to taking over control of Venezuelan oil resources. When Caracas Gringo puts all the oficial and unofficial debt together we are looking at a gigantic oooone huuuundred billion dollars, as Dr. Evil would say. This is the excerpt from Caracas Gringo's post:
"Venezuelan government debt is forecast to continue growing rapidly in 2010, since the government plans to issue up to $22 billion in new debt next year, including about $10 billion of bonds denominated in local currency (the Bolivar), and another $12 billion denominated in US dollars, according to Barclays. The Barclays report says its borrowing estimates for 2009 and 2010 are based on data provided by Venezuela’s Central Bank.
If these borrowing estimates are accurate, the Venezuelan government’s total debt could climb to $113.7 billion by end-2010. Also, if the same proportion of new borrowing by the central government and Pdvsa during 2009 is maintained in 2010, it can be inferred that Pdvsa’s debt could climb from $26 billion at end-2009 to about $35 billion at end-2010.
Moreover, these debt estimates apparently do not include some major additional liabilities, including:
*The $8 billion debt the Chavez regime owes China for Beijing’s “contribution” (i.e. loan) to the joint infrastructure fund created in 2007, initially for $6 billion but doubled to $12 billion in September 2008. Pdvsa is repaying this loan with fuel oil and Merey 16 crude exports.
*The over $20 billion in compensation which ExxonMobil and ConocoPhillips reportedly are seeking as compensation for Orinoco upgrader assets the Chavez regime expropriated in May 2007.
*Between $4.5 billion and $8 billion in unpaid Pdvsa debts to oil services companies and contractors, much of it dating since over one year ago.
*At least $12 billion in compensation for oil services assets the regime nationalized in May of this year. Pdvsa has not started the assets valuation process yet, but $12 billion is the estimate given by private sources.
*Over $2 billion in pension payments to Pdvsa retirees.
*Last but not least, a further $8.5 billion to $10 billion for the new and still unsigned collective contract with the Unitary Oil workers Federation (FUTPV). The old contract cost about $4.5 billion and covered 45,000 workers, but FUTPV President Wills Rangel (a chavista) says the new contract will cover all 90,000 of Pdvsa’s employees and workers.
These additional liabilities total a further $60 billion of red ink for Pdvsa, which implies that Pdvsa’s total debts and outstanding liabilities could hit $95 billion by end-2010.
A train wreck is happening at Pdvsa".
If these borrowing estimates are accurate, the Venezuelan government’s total debt could climb to $113.7 billion by end-2010. Also, if the same proportion of new borrowing by the central government and Pdvsa during 2009 is maintained in 2010, it can be inferred that Pdvsa’s debt could climb from $26 billion at end-2009 to about $35 billion at end-2010.
Moreover, these debt estimates apparently do not include some major additional liabilities, including:
*The $8 billion debt the Chavez regime owes China for Beijing’s “contribution” (i.e. loan) to the joint infrastructure fund created in 2007, initially for $6 billion but doubled to $12 billion in September 2008. Pdvsa is repaying this loan with fuel oil and Merey 16 crude exports.
*The over $20 billion in compensation which ExxonMobil and ConocoPhillips reportedly are seeking as compensation for Orinoco upgrader assets the Chavez regime expropriated in May 2007.
*Between $4.5 billion and $8 billion in unpaid Pdvsa debts to oil services companies and contractors, much of it dating since over one year ago.
*At least $12 billion in compensation for oil services assets the regime nationalized in May of this year. Pdvsa has not started the assets valuation process yet, but $12 billion is the estimate given by private sources.
*Over $2 billion in pension payments to Pdvsa retirees.
*Last but not least, a further $8.5 billion to $10 billion for the new and still unsigned collective contract with the Unitary Oil workers Federation (FUTPV). The old contract cost about $4.5 billion and covered 45,000 workers, but FUTPV President Wills Rangel (a chavista) says the new contract will cover all 90,000 of Pdvsa’s employees and workers.
These additional liabilities total a further $60 billion of red ink for Pdvsa, which implies that Pdvsa’s total debts and outstanding liabilities could hit $95 billion by end-2010.
A train wreck is happening at Pdvsa".
Red is red, and their surname is shit.
ResponderEliminarThe bonchón is learning English .... ohhhhh yeeeeeeeeehhh!!!!!!!!
Oh no! Como vas a enamorar a pitianonima, Bonchon? A lo mejor deberias aprender un acentico Cubano, oye tu?
ResponderEliminarEn serio, que vaina con estos chapuceros. Todo por la bendita revolucion, hasta nuestros tatara bis nietos van a pagar esa deuda!
¡¡¡No hay coco miemano!!!, Pitytrastonadita ya esta en el bote, la vaina es que no lo quiere reconocer, es dura de peláá.
ResponderEliminar(no se pUede tragar tanta basura durante tanto tiempo), la voy a llevar de luna de miel a "mayami" pa' que coja vista y cuando salga del barrio, que vea como es la vaina en verdad, y no como se la pinta su "aidol", va a sufrir un deslave de cerebro (?)
NO HAY COCO MIEMANO YYY VAAAAAYAHH!