Venezuela’s debt with Brazil is US$ 1.27 billion, informs ministry

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Most of the amount has already been covered by the Export Guarantee Fund. Venezuelan President Nicolás Maduro is in Brazil for the South American Leaders Summit. Venezuela’s debt with the Brazilian government was US$ 1.2 billion up to this Monday (29), according to information from the Ministry of Development, Industry, Commerce and Services (MDIC). The president of Venezuela, Nicolás Maduro, is in Brazil for the summit of South American leaders, which begins this Tuesday (30). Earlier, this Monday, Maduro attended a meeting with President Luiz Inácio Lula da Silva, at the Planalto Palace. Afterwards, the authorities attended a lunch at the Itamaraty Palace, headquarters of the Ministry of Foreign Affairs of Brazil, in Brasília. At the time, when asked about Venezuela’s debt to Brazil, Maduro replied that a bilateral commission “will establish the truth”. According to the MDIC, Venezuela’s debts with Brazil refer to “delinquency in Brazilian exports of goods and services that contracted the Export Credit Insurance, backed by the Export Guarantee Fund” Most of the operations were financed by the National Bank for Economic and Social Development (BNDES). The remainder, according to MDIC, was provided by foreign sponsors. In both scenarios, the importer is responsible, in this case, Venezuela (see below). Of Venezuela’s total debts with the Brazilian government, the ministry informed that most of them have already been covered by the FGE: US$ 1.09 billion – amount already compensated by the Export Guarantee Fund (FGE) US$ 53.9 million – indemnities that will still be paid by FGE Ariel Palacios on Maduro’s visit to Brazil: ‘Having to behave’ Guarantee fund Part of Venezuela’s debt with Brazil concerns financing via the National Bank for Economic and Social Development (BNDES) In this type of operation, the resources are destined to the Brazilian exporter of goods or services, in reais, after proof of Brazilian exports. Alongside the president of Venezuela, Lula tells the press that Maduro is not a ‘bad man’ The debtor is the importer, that is, the company or foreign country that buys the good or service. In case of default by the debtor, the structure of guarantees is triggered and the BNDES is compensated, for example, by the Export Guarantee Fund (FGE). In February, during the inauguration ceremony of Aloizio Mercadante as president of the institution, President Lula said he was “certain” that Venezuela would settle its debts with the BNDES during his government. “I am sure that, in our government, these countries will pay, because they are all countries that are friends of Brazil and will certainly pay the debt they owe to the BNDES”, he said.

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