PDVSA Reported Turning Off Bond Spigot

Venezuelan oil minister and president of PDVSA, Rafael Ramirez, says PdVSA does not plan to issue debt in 2011, according to Goldman Sachs, which does not state the source of the information. It adds that the company could offer another swap of the 2011 Petrobonos. “PDVSA and the Treasury have been issuing large amounts of dollar-denominated debt not only due to genuine financing needs but to a large extent to satisfy the large pent-up demand for dollar assets and pressure on the VEB to weaken,” says Goldman.