Setty just posted a first-glance analysis of PDVSA’s audited financial statements for 2013. How about all you accountants, economists, and number geeks out there wiki the thing? Let’s see just how “pragmatic” Mr. Ramirez really is.
If you have time, go through the thing and highlight the relevant aspects. Here’s hoping it makes for an interesting discussion, and we can uncover some nuggets.
The money quote from Setty’s first pass:
… [T]he ongoing fiction that Petrocaribe and other cheap oil deals are liabilities of the Republic, and not of PDVSA, appears to be well-dead. “Dividends were declared for $10,000 million, paid by offsetting with account receivables from the Republic” means that the national state simply eliminated $10 billion worth of debt to the state oil company. That that came from “the sale of crude oil and oil products in the framework of contracts and agreements subscribed with the governments of other countries.” (If you follow the reference to note 8-b, it is just a description of Petrocaribe. It says oil supply under that framework has dropped to 377,000 bbl/day in 2013 from 463,000 in 2011.) This could set up some uncomfortable political situations in coming years. Some Caribbean countries, like Jamaica, have built up big debts to this program. PDVSA managers are going to be stuck playing the heavy, collecting debts from impoverished nations. It means that Venezuela as a state will avoid being in such an embarrassing position.
$10 billion in Petrocaribe debt! Yowza.