Brazil is likely to inform major creditor countries of a $262.5 million debt owed by Venezuela after it missed a payment under a regional credit accord, three Brazilian government sources said on Monday, as its northern neighbor teeters on the brink of default.
The payment, which is more than two months late, was owed under the Reciprocal Credits Convention (CCR), a multilateral clearinghouse among South American nations, said the sources, who spoke anonymously due to the sensitivity of the matter.
They said Brazil had already sent a letter to the Venezuelan embassy in Brasilia warning that it may raise the issue with the Paris Club of creditor nations, which Brazil joined in 2016.
“Brazil intends to use this structure to collect the debt,” said one of the sources.
That would add to mounting pressure on Venezuela, which held a brief meeting with investors on Monday in its effort to renegotiate $60 billion in bonds to avert default.
Brazil’s central bank confirmed that Brazil was due to receive $334.5 million from other nations in the CCR, but received just $72 million due to Venezuela’s lack of payment.
“Given what happened with Venezuela, the values to be received by Brazil were recalculated,” the central bank said in a statement.
Representatives for Venezuela’s government did not immediately respond to a request for comment.