• Opinion by Francisco R. Rodríguez (denver, colorado, usa)
• Friday, October 23, 2026
• Inter Press Service
• Read Part 1

DENVER, Colorado, USA, October 23 (IPS) - So, if Venezuela claims to be importing from the rest of the world roughly as much as it was exporting during those years, and the rest of the world confirms Venezuela’s story, then where could those additional $11 billion that presumably ended up in the bank accounts of Maduro’s cronies be?

Technically, there are some ways in which a country could spend as much as it earns and still have large sums go missing. The first obvious one is if there were $11 billion lying around to steal. Except we know there weren’t, because the Venezuelan government was broke and had all its international accounts frozen. Even the Central Bank didn’t have access to most of its international reserves at the time. And remember, the Times is telling us that these $11 billion were coming out of unpaid receivables. In other words, the oil was being sold, it was being loaded into ships, and the owners of these ships were promising to pay Venezuela for that oil but, according to the Times, never did.

Another possibility is that Venezuela was accumulating assets because someone was lending it money. But that explanation doesn’t pass the smell test either. Nobody in their right mind would have lent $11 billion to Venezuela in 2021 and 2022. The country was sanctioned, barred from issuing any type of debt in the United States, and even non-US investment funds wouldn’t go near it with a 10-foot pole. The country didn’t even have access to bank accounts where a loan of that size could be wired.

And, quite frankly, if, say, China or Russia had lent Venezuela $11 billion and somehow gotten those dollars to Venezuela, don’t you think the New York Times, or Reuters, or the Wall Street Journal, would have written a story about that? And, by the way, where is that $11 billion creditor trying to get their money back? No other Venezuela creditors seem to know about them, which is quite odd for a country that has just announced that it’s about to start restructuring its debt.

In sum, nobody lent Venezuela $11 billion in 2021–22 because anyone deluded enough to do so wouldn’t have been lending the money; they would have been giving it away. The country already had a debt that was well in excess of its capacity to pay, and country risk premiums were through the roof. The expected return on any Venezuela debt issuance in those years would have been zero.

Digging in

Now here it is actually worth stopping for a minute and looking carefully at the numbers in the country’s current account, because what the balance of payments data allows us to do is not just look at how much the country receives and spends in foreign exchange, but also where that money comes from and where it goes. And here the story gets interesting because, oddly enough, what these numbers seem to tell us is that the Venezuelan government did borrow around $11 billion (or, more precisely, $10.4 billion) in those two years. They also tell us that it accumulated some $14 billion in accounts receivable, precisely the ones that the New York Times is telling us were not paid.

So, say you had just come down from Mars, knew nothing about Venezuela’s pariah status at the time, and looked at these numbers. You would say: well yes, Venezuela borrowed $10 billion in those years and at the same time accumulated $14 billion in accounts receivable (that is, promises to pay in the future) for its oil sales. And if then, on your short trip from Mars, you picked up a copy of the New York Times and read it, you would say: well, it looks like of those $14 billion, around $11 billion never got paid.

So why does the country’s current account data get us these numbers that are so strange? Herein lies what I think is the resolution of the issue.

Below is a slide from a presentation prepared by PDVSA in late 2022, where it reports all of the oil that was sold between 2020 and 2022.[1] Note that $13.3 billion in invoices were ceded to the Republic. That’s actually a bit higher than the Times’ $11 billion because it includes 2020. In other words, the government was paying for its imports through oil shipments because it could not use international bank accounts as a result of US sanctions. Normally, PDVSA would have sold the oil, received dollars in payment, and sold those dollars to the Central Bank. Then the government would have gone to the Central Bank and bought dollars from it to pay importers.

Since that mechanism could not be used, the government resorted to paying in-kind. It went to the importers and said: look, if you bring this much in imports into the country, we’ll let you go and collect from the people who bought our oil and who owe us money.

In fact, if you look at the decomposition of the supposed borrowing that the government did, you’ll find $6.3 billion of portfolio investment securities being issued by the government. And that rhythm of roughly $500 million per quarter continues until the end of 2025. That’s not because the government is issuing bonds. Believe me, if the government had issued a single bond, we would know about it (and whoever had bought that bond would have become the laughingstock of the securities world). But if you look at the fine print of the IMF’s Balance of Payments Statistics Manual, you’ll find that what characterizes portfolio investment is the fact that securities have to be negotiable. And this is precisely what Venezuela was giving importers: negotiable IOUs that they could exchange for oil receivables entitling them to receive payment for oil that Venezuela had sold.

We find a very direct statement of this in another slide of the PDVSA 2022 presentation, where the board states, in discussing cases of cesión de facturas (assignment of invoices) corresponding to shipments requested by the National Executive, that these were used to compensate debts with providers of the Republic.

There it is: we’ve found our mystery lender: importers who were being issued debt so that they could exchange them for oil shipments. So, when you see the balance of payments accounts say that the government was accumulating receivables and issuing debt, what you are really seeing is the way in which balance of payments statistics handle a practice that is as old as humanity: barter.

Oil and prejudice

Reality is often much more prosaic than what we want it to be. Government cronies did not walk away with $11 billion in unpaid oil shipments. What really happened is something much simpler: Venezuela didn’t have a way to pay in cash for the imports it needed, so it ended up paying with oil. And because PDVSA, the state-owned oil company, is legally distinct from the Republic, it did not directly collect on the shipments but rather transferred them to the Republic in payment of its tax and royalty obligations.

American journalist Sydney Harris once wrote that “we believe what we want to believe, what we like to believe, what suits our prejudices and fuels our passions.” And yes, the idea that Maduro’s henchmen walked off with $11 billion in oil shipments feeds well into many stereotypes of Venezuela under Maduro. Even if it sits awkwardly with the fact that he doesn’t seem to have money to pay for his defense in a Brooklyn court, most of us are predisposed to believe it.

Yes, Maduro’s regime was highly corrupt. No one puts that in doubt. But there is a long distance between recognizing its corruption and claiming that regime insiders walked away with half of the country’s oil exports. That image may fit a lot of political stereotypes and be useful for many political narratives. It just doesn’t fit the facts.

Francisco R. Rodríguez is a senior research fellow at the Center for Economic and Policy Research (cepr.net) in Washington, DC and a professor and fellow at the University of Denver’s Korbel School of International Studies.

[1] I obtained this presentation two years ago from reporters who wrote stories on it and who asked me to see it to discuss their interpretation of it.

IPS UN Bureau

© Inter Press Service (20261023045829) — All Rights Reserved. Original source: Inter Press Service

Where next?

Advertisement