Monday, February 27, 2006

Getting the country out of debt 

Last Thursday I did a post that gave some information on who put Venezuela in debt. Today I can do a much happier post going over a little bit of how the Chavez government is now working on getting the country out of debt.

According to Venezuelan Finance Minister, Nelson Merentes, Venezuela will pay down 3.9 billion dollars of its foriegn debt in bonds and another $813 million in debt with multilateral organizations for a total debt reduction of $4.7 billion. This will reduce its foreign debt from $31.06 billion to $26.350 billion dollars. This will also save Venezuela $675 million in debt service this year alone. That is not to even mention savings that result from an increase in Venezuela's credit worthiness which is already going up according to this Bloomberg article!

So while the opposition has very hypocritically tried to blame Chavez for Venezuela's high debt load (most of which was run up by them when THEY were running the country) we now see that the debt went up during the opposition led oil strike and that now that the economy has fully recovered from that calamity the government is paying down the debt.


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