Venezuela Avoids Default With Critical Payment

On Wednesday, when looking at the imminent principal payment
on $842 million in debt issued by Venezuela’s state-run oil company
PDVSA , we warned that the state – which had previously
activated a 30-day grace period on over $586 million in interest
payment due over the past month – may be bankrupt shortly for one
specific reason: unlike the rest of the country’s debt, the PDVSA
bonds have no grace period in the bond indenture for an event
of default. It is also why some suggested that Venezuela was
shoring up dollars by not repaying…

On Wednesday, when looking at the imminent principal payment
on $842 million in debt issued by Venezuela’s state-run oil company
PDVSA , we warned that the state – which had previously
activated a 30-day grace period on over $586 million in interest
payment due over the past month – may be bankrupt shortly for one
specific reason: unlike the rest of the country’s debt, the PDVSA
bonds have no grace period in the bond indenture for an event
of default. It is also why some suggested that Venezuela was
shoring up dollars by not repaying…