CARACAS, Oct 28 (Reuters) - Venezuela confirmed late on Tuesday state oil company PDVSA had paid off a $3 billion bond that had matured.
“The Bolivarian government continues to honor its commitments. PDVSA has paid its 2014 bonds for $3 billion. Efficiency!,” tweeted Finance Minister Rodolfo Marco.
Venezuelan debt had risen during the day following reports PDVSA’s 2014 bond had been paid, helping drive optimism after months of default concerns.
Despite government assurances it would honor commitments, investors were worried in recent months that Venezuela could halt payments on foreign debt to protect dwindling foreign reserves that had been hit by declining oil prices.
PDVSA’s sizeable social spending and heavy involvement in government policy have led investors to view its default risk as inextricably linked to that of the government. (Reporting by Alexandra Ulmer; Editing by Jacqueline Wong)