As President Donald Trump looks to lure oil companies back to Venezuela, it could sweeten the pot with government-backed financing from the U.S. Export-Import Bank. But first it would have to overcome a significant hurdle.
Due to a combination of U.S. sanctions and the country’s poor credit rating, Venezuela is not currently eligible for support from the Export-Import Bank, an independent federal agency established to finance the export of U.S. goods and services.
The Trump administration would have to therefore decide that Venezuela is an acceptable credit risk before the bank could provide financing for companies to help rebuild the country’s dilapidated oil infrastructure, Fred Hochberg, former president and chair of the government-run bank, said in an interview.
The Paris-based Organization for Economic Cooperation and Development lists Venezuela as a Category 7 country, meaning the highest credit risk.
