Venezuela's state oil company PDVSA is paying 2020 bonds due Friday

Venezuela's President Nicolas Maduro speaks during a meeting with members of the Constituent Assembly in Caracas, Venezuela August 2, 2017.
Miraflores Palace via Reuters

Venezuela's state oil company PDVSA has begun the process of making payments on the 2020 bonds due Friday, according to three sources familiar with the operation.

Bonds issued by Venezuela and PDVSA had dropped sharply on Thursday amid concerns that cash-flow problems and regulatory hurdles may leave the company unable to make the major bond payment.