Venezuela’s President Hugo Chávez informed on Thursday that the state-owned company Petróleos de Venezuela (PDVSA) will issue $2 billion in bonds through the new Public Stock Exchange established in the new Stock Market Law.

The Venezuelan president made the announcement during an event to grant payment guarantee certificates to account holders swindled by the seized bank Banco Federal.

“This belongs to the economic strategy, Venezuela’s public debt is really low regarding our GDP, so we still have space to get into debt for diverse development works,” he explained.

The Venezuelan leader added that the new Public Stock Exchange will be used to carry out operations with fixed-income securities and variable return securities, and place public debt bonds.

“State-owned companies can place their securities in this market as well as the organized community, small and medium enterprises and private companies,” he added.

This week the Venezuelan government issued the 2022 Amortizable International Sovereign Bound by $3 billion, which tripled the demand.

This bond emission is part of the allocations scheduled by the Venezuelan government, by $10 billion, within the ambit of the Budget Law and the Special Law of Annual Owe for the 2010 tax year, which was approved by the National Assembly.

AVN/Venezuelan Embassy to the U.S. / August 19, 2010