Venezuela, state oil firm default on billions worth of bonds

NEW YORK – The Venezuelan government and its state-owned oil company PDVSA have officially defaulted on billions of dollars’ worth of bonds, the latest chapter of the country’s deep financial collapse.

The International Swaps and Derivatives Association, a group of banks and brokers that determines whether an entity like Venezuela has failed to make on-time payments on its debts, voted Thursday to say that Venezuela had defaulted.

The vote will trigger what is known as a “credit event” on securities like credit default swaps, which investors buy as a type of insurance against a potential default.

Two rating agencies — Fitch and Standard & Poor’s — already determined this week that Venezuela’s government was in default.