Venezuela's petrochem industry owes US$680mn abroad

Venezuela's chemical and petrochemical firms owe some US$680mn to foreign suppliers, according to Juan Pablo Olalquiaga, head of local chemical and petrochemical association Asoquim.

The situation is primarily caused by a lack of foreign currency as well as by the industry's falling productivity, Olalquiaga was quoted as saying by newspaper El Universal.

Between October and May Venezuela's foreign trade authority Cencoex paid only US$140mn, the amount corresponding to chemical and petrochemical imports. "Things are going badly in terms of refrigerant gases, lubricants and paints. There's a lack of inputs that's gotten worse over time," Olalquiaga was quoted as saying.

A price freeze on cleaning products, which the government has not updated since 2011, is also impacting Venezuela chemical and petrochemical firms, the association head added.