Government ponders buyback of foreign debt

[Judi Lynn]

Caracas, Thursday May 29 , 2008

Government ponders buyback of foreign debt

The Venezuelan government is thinking about repurchasing its foreign debt for at least USD 1.5 billion as part of a decision that could be announced next week, with the prior blessing of the National Assembly, a government source told Reuters.

The official explained that, in addition, a plan was being outlined for state banks to buy foreign debt. Such a plan has a twofold purpose: strengthen Venezuelan securities and improve the investment portfolio of the state banks.

"There is a whole plan to buy back everything for at least USD 1.5 billion, but this still needs to be authorized by the government and the National Assembly," said the source, who expected that the news would be given next week.

Asked about future plans for issue of debt bonds, the source answered that under the 2008 indebtedness schedule; there would be an issue between August and September for about USD 1.5 billion. The placement, however, will be in local currency.

More:
http://english.eluniversal.com/2008/05/29/en_eco_art_government-ponders-b_29A1620719.shtml
opposition newspaper