(Adds quote, details on U.S. sanctions)
CARACAS, Sept 14 (Reuters) - Venezuela will make all pending debt payments despite "a series of difficulties" that have arisen as a result of financial sanctions by the United States, Economy Vice President Ramon Lobo told reporters on Thursday.
The United States in August prohibited dealings in new debt from Venezuela and state oil company PDVSA in response to the creation of a new legislative superbody that critics call the consolidation of a dictatorship.
The sanctions did not block banks from serving as intermediaries in debt payments, but the government of President Nicolas Maduro has said they are interfering with the country's finances and threatening to lead it toward default.
"We are going to meet our commitments. We have come across a series of difficulties, but that will not stop us," Lobo said in a news conference. "There is an order to seek a financial blockade that will put us in a situation of insolvency, which is completely out of the question."
He did not offer details on what the difficulties were or what mechanisms would be involved in overcoming them.
Financial institutions have in recent years grown wary of doing business with Venezuela even before the most recent sanctions, due to increased concern that Venezuelan funds are associated with money laundering and drug trafficking.
But banks have broadly maintained existing contracts to provide paying agent services on Venezuela and PDVSA bonds.
Asked about media reports that PDVSA is selling oil in euros rather than dollars in response to sanctions, Lobo said the company has been working on that for some time.
In 2008, then-Energy Minister and PDVSA President Rafael Ramirez told Reuters that the country's oil industry had started using the euro for some sales.
The country's deep economic crisis and flailing socialist economy have spurred concerns about default, leaving Venezuela and PDVSA bonds heavily discounted with the highest yields of any emerging market security.
Maduro calls default talk a conspiracy against him, and he notes that the country has never missed a debt payment under the ruling Socialist Party.
(Reporting by Deisy Buitrago; Writing by Brian Ellsworth; Editing by Chris Reese and Lisa Shumaker)