Venezuela's state-owned oil giant announced on Friday it had made a critical debt payment, avoiding a catastrophic default that could have seen the company lose control of the U.S.-based refiner Citgo, one of its crown jewels.

In a statement, Petreleos de Venezuela SA said it honors its debts, despite the "economic war" that U.S. President Donald Trump is waging on Venezuela.

PDVSA, as the company is known, said it was processing $841 million in principal due Friday on a bond that was backed by Citgo. For bondholders, the statement capped a tense week as the company remained radio silent about the payment.

As recently as Thursday evening, asset managers and bondholders were concerned PDVSA would not make the payment. Bond prices tanked after the company failed to make a statement following initial reports that it would avoid default.

If PDVSA defaulted, the market feared it would also skip a $1.2 billion payment on a bond that matures on Thursday.

With the payment on Friday, the "state confirms its full solvency and its ability to respond to its commitments, despite the economic war, the unjustified imposition of sanctions by Donald Trump," PDVSA said in a statement posted to its Facebook page.