Venezuela creates $30 million fund to pay oil obligations

By Caroline Salls

Pittsburgh, Jan. 19 - Venezuela created $30 million of funding to honor its oil-indexed payment obligations.

As of Oct. 15, Venezuela owed an estimated $35 million on oil-indexed payment obligations that were originally issued in conjunction with the government's bank-debt restructuring in 1990, Standard & Poor's said in a ratings release Tuesday.

Venezuela reiterated its commitment to honor the bonds and said S&P's downgrade of the republic's sovereign debt to SD (selective default) from B was made in haste, saying S&P did not consider Venezuela's efforts to honor its proposal of debt restructuring in 2005.

The ratings company said in its release that it expects Venezuela to make the payments next month and that it would adjust the ratings accordingly at that time.

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