VENEZUELAN PRESIDENT DEFENDS REFINANCING ACCORD
president jaime lusinchi defended the
20.3 billion dlr debt rescheduling accord his government
recently signed, saying it will open new credit flows and bring
needed foreign investment to venezuela.
    In his annual state of the nation speech, lusinchi also
said venezuela supports other latin american debtors, despite
having reached a rescheduling accord on its own.
    In the 90-minute speech to the congress, lusinchi summed up
the achievements of his administration, which took office in
february 1984. He pointed to the 3.3 pct growth in non-oil gdp
in 1986 and to a "moderate" 12 pct inflation rate.
    Lusinchi said the 20.3 billion dlr debt rescheduling signed
feb. 27 put an end to a process which had been 'the calvary of
our nation over the post four years.'
    In the refinancing accord, he said, venezuela managed to
achieve 'the most inmportant thing, which is the reopening of
financial flows from abroad, essential for the financing of
development and the (financing) of trade and investment.'
    Once all the details of the agreement are finalized, he
said, venezuela will seek new financing for the imported
components of new development projects.
    "our intention is not to continue being net exporters of
capital, but to protect our balance of payments with a flow of
capital towards venezuela," he said.
    Under the agreement signed february 27, venezuela extended
payments on the debt from 12 to 14 years, while the interest
rate was lowered from 1 y 1/8 to 7/8 of a pct over libor.
    At the same time, payments over the next three years were
lowered from 3.450 to 1.350 billion dlrs.
    Lusinchi defended the rescheduling accord against critics
who said it merely deferred the weight of payments to future
governments.
 Reuter
