Published On: Thu, Aug 21st, 2014

PDVSA financial rating falls from stable to negative. (Fitch S&P, Moody’s)

GreentownWhile it is said that PDVSA continues to generate good financial results, fund capital spending internally and maintains a solid liquidity, the big hovering question remains whether they will be able to fund modernization or finance a new Isla refinery in Curaçao.

We all know that the Venezuelan government controls PDVSA's budget and has steeply increased its transfer payments over the past few years in the form of royalties, social payments and dividends to support government spending and social programs. PDVSA has been borrowing heavily from the Central Bank of Venezuela with drawings as large as $40 billion according to credit reports.

PDVSA holds Curaçao development hostage. Another flagrant example of how Venezuela dominates our future. When do we halt their domination over us and put Curaçao ahead of Venezuela. When are we going to put Curaçao's interest above our personal or party’s interest?

During the worsening fiscal and economic time in Venezuela in the post- Chavez era, the Venezuelan government is becoming more and more dependent on PDVSA, which would further constrain PDVSA’s capital investments.

Do we really think that PDVSA will be able to invest in Curaçao?
Isn’t it time to look at alternatives? Ban serio!

GreenTown would like to start outside the refinery with project A (Nijlweg) B (Asfalt meer) and C (Dock maatschappij) but needs to know what PDVSA is going to do before commitments can be made.

By Andres F. Casimiri

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