Russia has agreed to restructure $3.15 billion (Â£2.4 bn) of debt owed by Venezuela, providing a breathing space for cash-strapped countries.
The deal, announced Wednesday, allows Venezuela to make “minimal”, the repayment of Russian bonds during the next six years.
It comes a day after the rating agencies, has raised concerns after Venezuela failed recent debt and interest payments.
Venezuela has an estimated $ 140bn to foreign creditors.
The government has organized a meeting in Caracas earlier this week to discuss the restructuring, but the creditors who attended the meeting, told reporters that it ends without the government making any concrete proposals.
Venezuela officials said the government had started the transfer of $ 200 million in interest payments and that it would continue to meet its obligations.
“Venezuela is progressing towards the recomposition of its external debt to the benefit of its people” of Venezuela, the Minister of Finance Simon Zerpa said on Wednesday that it has announced the agreement with Russia.The confidence of China
Russia and China are among the principal allies of Venezuela, which has always relied on its oil wealth to buoy its economy and finance its government.
But the decline in oil prices, which has sent the country into an economic and political crisis.
The usa and the European Union have imposed sanctions, citing the government’s repressive policies.
The Russian Ministry of Finance announced the agreement announced Wednesday would allow Venezuela to release funds for the economic development and enhance its capacity to repay all the creditors.
Russia earlier agreed to restructure the Venezuela debt in 2014. This agreement provides for a full refund within 10 years.
Separately, China has also expressed his confidence in the Venezuela of the financial situation.
“We believe that the Venezuelan government and people are capable of correctly manage their debt problems,” the Ministry of Foreign affairs spokesman said at a press conference.
“At present, the financing of the cooperation between China and Venezuela, is running as usual.”
Venezuela has borrowed billions of dollars from Russia and China over the years, mainly thanks to the oil for loans deals.
Analysis: Daniel Gallas, BBC South America correspondent
The world watches in Venezuela, not knowing what to make of his recent missed payment deadlines.
Is this the beginning of the world, the largest debt default? Or is this just a minor setback for a country in financial difficulty?
Venezuela says it wants to restructure its huge debt.
But its inability to present a credible plan at a meeting with investors on Monday, suggesting President Nicolas Maduro the only strategy is to buy more time.
Wednesday new pact with the Russians can be crucial for the honor of future payments.
But how long can Venezuela afford to keep buying it just in time, before it goes bankrupt?