SAO PAULO -- The Brazil Secretariat for International Affairs of the Ministry of Finance reports that on January 5, 2018, the Central Bank of Venezuela (BCV) paid its debtor balance with Brazil due back in September for the second four-month period of 2017 under the Agreement on Reciprocal Payments and Credits (CCR).
The amount paid was US$262.5 million.
Receipt was possible due to a joint initiative between the Secretariat of International Affairs, the Central Bank of Brazil and the financing banks.
"Due to the payment by the Central Bank of Venezuela, on January 9, 2018, the Central Bank of Brazil transferred the amounts owed to the Authorized Financial Institutions with export operations registered in the four-month period, paying the internal Brazilian debts in the process," reports the Finance Ministry.
The funds went to pay BNDES, Credit Suisse and the Bank of China for financing operations of Brazilian exports to Venezuela.
If Venezuela hadn't paid, Brazil's export guarantee fund FGE would have had to take the money from the Brazilian treasury to pay the installments, a situation that is also happening because of Mozambique's failure to pay for its Brazilian imports.The transaction took place based on the Special Drawing Rights of the International Monetary Fund, "as the debtor indicated operational problems to repay debt in US dollars,"
reported Brazil Finance Ministry.
Brazil also reports that Venezuela did not honor its commitments to the CCR scheduled for January 2018 of US$274.6 million.
"The Brazilian government will adopt measures to seek settlement of those payments," reports the Ministry.
Venezuela has burned through its $3.7 billion of Special Drawing Rights at the IMF and the remaining IMF SDR funds are not enough to settle the remaining Brazilian debts.