Chavez Orders Faster Payment for Oil

(Caracas, Venezuela) President Hugo Chavez is looking for faster payment on crude oil sales by reducing the payment period from the standard 30 days to eight.

The Venezuelan state oil company PDVSA issued a statement:

"With this measure PDVSA injects greater intensity and speed to reinvestment with the aim of staying competitive in the hydrocarbons market."

Regarding the assertion that "intensity and speed to reinvestment" is the motivation for compressing the payment period, it appears that Chavez has a cash flow problem. Either that or he's trying to squeeze out an additional three weeks' worth of interest on deposited oil revenues.

With Chavez spending wildly on social programs, it makes sense that he would try to eke out every conceivable farthing from his oil business.