The British global financial services provider estimated Pdvsa’s oil export at USD 62 billion in 2011 and USD 70.7 billion in 2012 (Photo: AP)

Economy
The cash flow of state-run oil company Petróleos de Venezuela's will plunge due to the preferential financial conditions granted by Venezuela and the exchange of crude oil and products for goods and services.

According to a report issued by Barclays Capital, Pdvsa "will not receive in cash USD 9.4 billion in 2011 and USD 10.7 billion in 2012" due to the export agreement with Cuba and a 50 percent discount in the total invoice value of Venezuelan oil exports to the Caribbean countries (under the Petrocaribe cooperation agreement). All of this includes preferential terms such as long-term funding, and the mandatory payments on loans granted by the bilateral Chinese Fund.

As a result, Pdvsa will not receive USD 20.1 billion in cash between 2011 and 2012.

Venezuela's commitments to the Chinese Fund amount to USD 3.1 billion in 2011 and USD 4.2 billion in 2012.

Meanwhile, sales of crude oil and products, under preferential financial conditions, will amount to USD 6.2 billion in 2011 and USD 6.6 billion by 2012.