Central Bank of Venezuela seen in debt reshuffle

The Central Bank of Venezuela and Petroleos de Venezuela (PDVSA), the state-owned oil company, have reportedly reached an agreement that will allow the latter to roll over its ballooning debt. According to reports, PDVSA owes the Central Bank of Venezuela about $42 billion – more than half of which was accrued during the second half of 2013. Initally absorbed by the Venezuelan Treasury, the oil company's debt was later financed by the central bank through so-called "investment operations" – effectively printing money, according to one local news organisation. More...