Capital News

When Chavez is news, not expect something good. Not surprisingly, whatever you do, after so many years of madness at the front of the power. It is clear that the law of Chavez, i.e. the willingness of Chavez, which by most outrageous resulting, becomes law prevails in Venezuela. Chavez does what he wants, but not what you need and is for this reason that the economic context of Venezuela continues complicating doing that the economic crisis is inevitable. The only thing missing for anticipating is when will occur. When we speak of oil in Venezuela, inevitably associate it with the State giant Petroleos de Venezuela SA (PDVSA), but around it there are several companies which, the State oil company relies on to produce. On these, Chavez has cast the eye.

As commented them in an article in the month of February, product of the strong fall in the price of oil and an administration that leaves much to be desired, PDVSA had accumulated a substantial debt with companies providing vital services that the State oil company could develop its activity. Chavez continues in campaign while oil revenues in danger. Actually, the problem faced by PDVSA is worrisome and difficult to resolve. An average economic consultant had recommended a thorough analysis of the company to carry out a series of far-reaching reforms aimed at improving its production efficiency, together with other measures to increase the country’s oil reserves, to ensure that the petroleum sector continues to be the fundamental source of foreign exchange for the country. According to Capital News, PDVSA is closer to bankruptcy. The company keeps makeup a more than US $24,000 million liability and has serious financial problems for which has resorted to the savings of employees giving dubious guarantee bonds for US $2.5 billion (for sample, PDVSA bonds maturing in 2027 are traded at 38.6% of its value).