VENEZUELA SETS FOREIGN DEBT TARGETS
Venezuela plans to have a public sector
foreign debt of 26.5 billion dlrs by early 1989 when the
present government of President Jaime Lusinchi ends its term,
public finances director Jorge Marcano said.
    He said the target, which compares with around 24.5 billion
dlrs now and 29 billion at end 1983, is considered a manageable
amount which will assist in development plans.
    The government last week reached agreement with its 13-bank
advisory committee to reprogramme its 12-1/2 year rescheduling
accord over 14 years with the interest margin lowered to 7/8
pct over London Interbank Offered Rate (Libor) from 1-1/8 pct.
    In an interview with El Universal newspaper, Marcano said
he thought U.S. Government pressure on banks had more to do
with the unexpectedly speedy agreement than Brazil's decision
to suspend interest payments.
    "I think what speeded an agreement was the attitude of the
U.S. Government, which urged several major banks to soften
their position in various debt renegotiations. The Brazil
announcement came later," he said.
    Bankers noted Citibank had held up an agreement with Chile,
objecting to proposals for delayed interest payments. A pact
with Chile, with a one pct spread, came a day before
Venezuela's.
    Marcano said a telex sent to Venezuela's 450 creditors
seeks support for the government's foreign borrowing plans,
which are aimed at aluminium, steel and iron ore projects. "We
cannot rule out a trip to financial centres to explain the new
agreement and present the financing programmes we have," he
said, adding he hoped to restore credit ratings of the 1970s.
    Lusinchi said on Monday the government will limit foreign
borrowing, which would come from banks and multilateral
agencies, to 50 pct of interest and principal paid in the next
two years. According to the restructured accord, this would
work out at around 2.5 billion dlrs.
 REUTER
