June 9, 2017 / 6:03 PM / 8 months ago

Lender CAF denies Venezuela enters grace period on loans

CARACAS, June 9 (Reuters) - Latin American development bank CAF denied on Friday that Venezuela had entered a grace period for payment on its loans, a day after legislative sources said the country was late on a $30 million for interest payment.

“At this moment, the Bolivarian Republic of Venezuela is up to date on its obligations,” the bank said in an emailed statement. A spokesman also specifically denied that Venezuela was in a grace period.

The member of the Organization of the Petroleum Exporting Countries is struggling to service its heavy debt burden as the state-led socialist economy unravels under low oil prices. Its bond yields are among the highest of any emerging market country because of investor concerns of default.

President Nicolas Maduro insists his government will meet all debt obligations and dismisses talk of default as conspiracy by political adversaries.

Venezuela received $1.9 billion in disbursements from CAF between 2012 and 2016, according to its 2016 annual report.

CAF in 2016 approved $541 million in operations for Venezuela including $400 million for urban development, $40 million for potable water systems, and a renewal of a $101 million credit line to state development bank Bandes, the report said. (Reporting by Diego Ore; Writing by Brian Ellsworth; Editing by Richard Chang)

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