Venezuela in selective default, says credit ratings agency

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Worldwide credit ratings agency Standard & Poor’s has declared Venezuela to be in «picky default».

The ratings agency said the South American nation had failed to favour $200m (£153m) in repayments on its foreign debt.

Venezuela’s state-run oil companions PDVSA has also been declared in default by rating agencies Fitch and Down in the dumps’s.

The news came just hours after the government met investors in Caracas to try to renegotiate its in the red.

Read: Venezuela’s debt problem: To default or to pay

Standard & Poor’s proclaims a «selective default» when a country has failed to pay one or more of its financial duties when it came due.

In the case of Venezuela, the government of President Nicolás Maduro failed to pocket $200m in payments on two global bond issues by 12 November, when a 30-day decorum period expired.

S&P says Venezuela is also overdue on four other covenant payments worth a total of $420m but that the grace period has not yet expired on those payments.

Venezuela’s total number external debt, which also includes loans from countries with Russia and China, is thought to be as much as $140bn.

Hampered by sanctions

On Monday, oversight officials met with creditors in Caracas in an attempt to restructure its debt.

But creditors who followed the meeting told journalists that the 25-minute meeting ended without the rule making any concrete proposals.

Instead, the head of the Venezuelan commission, Vice-President Tareck El Aissami, infer from a statement blaming sanctions imposed by the United States for Venezuela’s scrapes in making the payments.

Mr Aissami, who has been accused of drug trafficking by the US, is himself on the heel of Venezuelan individuals sanctioned by the US treasury department.

Participants in the creditors’ conjunction said at least one attendee left the room when it became clean Mr Aissami would be leading it.

Under the sanctions, no US citizen can do business with Venezuelan owns on the list.

The sanctions also impose a ban on US entities buying any new Venezuelan in dire straits issues, complicating the government’s debt restructuring plan.

The Venezuelan regulation described the creditors’ meeting as «a resounding success» and said that it see fit continue to service its debts.

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