Financial Times FT.com

Venezuela oil group gears up for $2bn issue

By Benedict Mander

Published: May 7 2009 19:36 | Last updated: May 7 2009 19:36

PDVSA, Venezuela’s state-owned oil company, is expected to issue a bond for at least $2bn this month, easing its mounting cash flow crisis and stemming a heavy depreciation in the black market exchange rate.

Buffeted by declining oil revenues, PDVSA’s ability to pay contractors and the government’s ability to satisfy demand for dollars – which it has regulated since introducing capital controls in 2003 – have been seriously weakened.

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