Palma, Pedro A. (1982) Venezuela’s Foreign Public Debt. Jorge, A. – Salazar-Carrillo, J. – Higonnet, R. (Eds.) Foreign Debt and Latin American Economic Development. New York: Pergamon Press. Pp. 163-168.
For several decades Venezuela considered itself conservative with respect to foreign indebtedness. It financed most of its public sector expenses with oil income, both elements grew in a relatively moderate fashion, oblivating the need for external financing. This situation changed radically during the 1970’s, when not only the public sector, but the private sector as well, began to resort increasingly to international financial markets to cover investments, and in some cases, operating expenses. Paradoxically, this process occurred at the height of the oil boom which began in 1974, when exports and public revenues coming from the oil sector tripled.