Oct 17 (Reuters) - A New York judge who last month

confirmed the validity of defaulted Venezuelan bonds ruled on

Friday that Venezuela's state oil firm PDVSA must pay $2.86

billion to the bondholders, according to a court filing.

The bonds are collateralized with equity in Citgo, PDVSA's

Houston-based refining arm. The decision from the Southern

District of New York has been long expected by creditors aiming

to cash compensation from debt defaults, but is expected to be

challenged by Venezuela.