VENEZUELA WILL REPROGRAM SIX BILLION DLRS IN DEBT
Venezuela's recent agreement with its
creditor banks reprograms six billion dlrs of its 21 billion
dlr public sector foreign debt rescheduling and reduces
repayments due between 1987 and 1992, Finance Minister Manuel
Azpurua said.
    Azpurua was commenting in a television interview on
Friday's agreement to lower the interest margin to 7/8 pct over
Libor from 1-1/8 pct and extend the period to 14 years from
12-1/2.
    He said in addition to the reduction in amortizations over
the next three years sought by the government, agreed at 1.35
billion dlrs instead of 3.335 billion, Venezuela will also pay
less in the subsequent three years. The accord runs till 1999.
    Azpurua said that in 1990, payments of restructured debt
are lowered to 1.05 billion dlrs from 1.339 mln, to 1.25
billion from 1.994 mln in 1991 and to 1.45 billion from 2.403
billion in 1992.
    He said the contingency clause implemented by Venezuela
soon after the original rescheduling was signed in February
1986 stays in effect and that the new payment schedule is based
on an assumption of oil prices varying between 15 and 18 dlrs a
barrel.
    Venezuela, hit by a 40 pct drop in oil income last year,
had sought a direct link between repayments and the level of
oil income, but banks resisted on the grounds this could create
a dangerous precedent for other Latin American debtors.
    Azpurua said the new terms have been telexed to Venezuela's
450 creditor banks for acceptance with information on
government plans to draw up debt capitalization rules and
return to the capital markets.
    Public finances director Jorge Marcano said the government
plans to issue dollar, mark and yen denominated bonds this year
for amounts varying between 100 and 150 mln dlrs.
    He noted that some existing Republic of Venezuela bond
issues are maturing, and that the government intends to replace
them with new issues to maintain its presence in the capital
markets and encourage new investments through an enhanced
credit image.
 Reuter
