Venezula: Cash and carry sign of cash flow problems
Posted by: mcq
on Saturday, February 02, 2008
Is Venezuela having a little cash flow crunch?
Venezuela's state-run oil company PDVSA is seeking a $1 billion up-front payment for several large shipments of fuel oil, El Universal newspaper reported on Saturday, in what may be a new sign of cash flow problems.So, everything seems to be going according to the "socialism doesn't work" script, doesn't it?
Under the deal, Venezuela is selling the fuel relatively cheaply but wants payment next week, the newspaper said.
PDVSA wants to find buyers for eight very large crude carrier cargoes of fuel oil by Feb. 6 and expects payment the following day.
President Hugo Chavez uses PDVSA as the financial engine of his socialist revolution, drawing down capital for social projects, and analysts say the company is facing a cash crunch despite high crude prices.