Venezuela and PDVSA, the country’s state oil firm, have defaulted on billions of dollars of loans, according to the Associated Press.
The company, properly called Petroleos de Venezuela SA (PDVSA), manages the world’s biggest oil reserves, a huge amount of them offshore.
Despite being resource-rich, years of economic mismanagement has plunged the entire Venezuelan economy into crisis, as has been reflected for months in stories of PDVSA missing or being tardy with payments to suppliers.
Ratings agencies Fitch and Standard & Poor’s plus the International Swaps and Derivatives Association (ISDA) – a body of banks and brokers – have all declared Venezuela in default on bond payments.
The ISDA’s decision on this has triggered limited payout on credit default swaps pertaining to Venezuelan securities.