Venezuelan Workers Confederation President Carlos Ortega gives a news conference at his office in Caracas, Venezuela, Saturday, April 20, 2002. "If we Venezuelans can't reach some kind of agreement, we are headed, unfortunately, painfully and irreversibly, toward a civil war," Ortega said. (AP Photo/Gregorio Marrero)
Venezuela Eyes $350 Million From FIEM To Ease Cash Crunch-Report Thu Apr 25, 2002 -[Full Text] CARACAS -(Dow Jones)- Venezuela 's central bank approved a $350 million transfer to the treasury from the Macroeconomic Stabilization Fund, or FIEM, to help ease cash-flow, local daily El Nacional reported Thursday. The transfer needs congressional approval but the National Assembly's Finance Commission head, Rodrigo Cabezas, said he hasn't been informed about it yet, according to the report.
The FIEM is a rainy-day fund that, in the last two years, absorbed half of Venezuela 's oil revenues above budgeted levels. The account, which had $5.59 billion as of Apr. 23 , isn't expected to get any deposits this year as a result of a new law.
The planned transfer follows comments Tuesday by an official who suggested the government start talking to multilateral lenders about borrowing as much as half of what he estimates will be a $4 billion shortfall this year. The remainder could come from debt markets once lenders like the International Monetary Fund have approved loans for Venezuela , National Assembly Economics and Finance Advisor's office director Francisco Rodriguez said.
This year's $35 billion budget was first drawn up with expectations that Venezuelan oil would fetch an average $18.50 a barrel.
As oil prices dropped earlier this year, officials amended the average price expectation to $16/bbl and have promised to cut spending by about 7%.
Thus far, however, the government hasn't made any specific cut backs. [End]
El Nacional Website: www.el-nacional.com
Venezuela To Borrow Half Of $2 Billion For Tocoma Hydro Elec Dam (Dow Jones) CARACAS -(Dow Jones)- Venezuela hopes to borrow, from multilateral lenders and other institutions, half the $2 billion investment for the final part of its Lower Caroni hydroelectric power project, the government's Venpres news agency reported late Thursday. - Apr 26, 2002