NEW VENEZUELA DEBT INTEREST RATE GOES INTO EFFECT
The new interest rate of 7/8 pct over
Libor on Venezuelan public sector debt payments goes into
effect today, Finance Minister Manuel Azpurua said .
    Azpurua told reporters yesterday the reduction from the
previous margin of 1-1/8 pct above Libor will save the country
some 50 mln dollars in debt servicing.
    The new rate is among changes agreed last month to the 20.3
billion dlr public sector debt rescheduling. Under the new
agreement, Venezula was also able to extend the term from 12 to
14 years and to lower debt payments in the 1987-89 period by 64
pct.
    Azpurua said that according to the agreement, the new
interest rate will be retroactive to April 1, provided the
accord is approved before October 1.
    He told reporters the term sheet detailing the changes in
the rescheduling has already been endorsed by the 13-member
debt steering committee and is now being sent to the country's
460 creditor banks for their approval.
    The new agreement replaces a rescheduling accord signed in
February 1986, which Venezuela asked to revise to reflect a 45
pct drop in oil revenues.
 REUTER
