State-run oil holding Petróleos de Venezuela (Pdvsa) has put on the table a wide array of proposals to repay the debt owed to the Central Bank of Venezuela (BCV) as the latter prints out money for Pdvsa to cover its expenses.

The debt amounting to USD 42 billion emerged from the following scheme: Pdvsa delivered promissory notes to the National Treasury; later on, the BCV bought the promissory notes, already expired, as "investment operations."

Under Pdvsa's payment schedule discussed with the BCV, the Venezuelan Mining Corporation, an agency attached to Pdvsa, should set up a trust fund to issue securities. Next, the BCV will buy the securities and deliver Pdvsa's promissory notes as payment.

In this way, the promissory notes would go to an agency attached to Pdvsa, and the BCV would receive some more than papers upon maturity of the securities, with the Venezuelan Mining Corporation being responsible for payment.

Pursuant to Article 60 of the Central Bank Law, the BCV "may buy and sell in the open market securities and other financial instruments globally issued for such purpose as established by the board."

Since the whole debt cannot be repaid by these means, a second stage focuses on gold.

In this stage, Pdvsa is expected to assign to the BCV a portion of the gold exploitation rights conferred under Decree 9,368 of January 30, 2013, in exchange for the promissory notes.

On December 17, 2013, Pdvsa's President and Vice-President for Economic Affairs, Rafael Ramírez, reported that the BCV and Pdvsa established a joint venture for the gold business, with Pdvsa holding 60% of the owner share and BCV being responsible for buying all the ounces extracted in the country.

"Pdvsa has exploitation rights for more than 92 billion ounces of gold. We head for re-launching of the gold sector," Ramírez said. However, he did not specify whether this step forms part of the plan to honor the debt owed to the BCV.