Chavez touts $500 million bond deal with Argentina
BUENOS AIRES, Argentina (AP) -- Venezuelan President Hugo Chavez said his government has snapped up $500 million in Argentine bonds to help the country free itself from the International Monetary Fund, which he likened to "Dracula."
In Argentina as part of a four-nation South American tour, Chavez also said Venezuela is pursuing bond deals with leftist allies in Ecuador and Bolivia -- deals seen as a major push by Chavez to spread his petro-dollar influence and counter U.S.-backed free-trade prescriptions.
Chavez praised Argentine President Nestor Kirchner for their close "friendship" and said Venezuela intends to purchase yet another $500 million in Argentine bonds in the coming months.
"Argentina is freeing itself from Dracula, breaking the chains of the International Monetary Fund," Chavez said at a Tuesday news conference before heading to Uruguay to meet leftist President Tabare Vazquez. Chavez also plans to visit Ecuador and Bolivia.
Chavez said Venezuela has acquired some $5.1 billion in Argentine bonds over two years. He said that other bond deals are being negotiated with leftists Rafael Correa of Ecuador and Evo Morales of Bolivia, with details to be announced "in due time."
In January 2006, Argentina repaid its entire remaining $9.6 billion debt to the IMF, a move Kirchner made in the name of greater economic independence.
Argentina defaulted on a record $100 billion in debt in 2001 but later renegotiated jilted creditors on terms of about 30 cents or less on the dollar.
The country's economy has grown robustly since a 2001-2002 financial meltdown. Kirchner was traveling elsewhere in Argentina on Tuesday and did not comment on terms of the bond swap.
Chavez's administration expects to repackage the Argentine debt with Venezuelan bonds for sale in the domestic market to soak up excess liquidity in the economy and serve pent-up demand for foreign exchange.
The Venezuelan government has profited by reselling Argentine debt, and has used such bond sales as a tool to beat back inflation, which last year reached 17 percent amid heavy government spending.
Chavez also said he plans to sign a series of "energy security" pacts with most countries on his stops, as he did with Argentina.
The energy agreement announced with Kirchner on Monday calls for cooperation on the distribution of natural gas through pipelines, joint oil refining projects and coordinated efforts on distributing power and alternative fuels.
Chavez also said Venezuela would invest in a regasification plant for liquid natural gas for Argentina, which is weathering an energy crisis. He said the plant could be completed within two years, and local reports said it would cost at least $400 million.
Meanwhile, leaders of Argentina's 200,000-plus Jewish community issued a statement opposing any further warming of ties with Chavez and objected to his visit here because of the Venezuelan president's close ties with Iran.
Argentina is seeking the arrest of five prominent Iranians and a Lebanese militant in the 1994 bombing of a Jewish community center in Buenos Aires. Eighty-five people were killed and 200 were wounded in the blast.
BUENOS AIRES, Argentina (AP) -- Venezuelan President Hugo Chavez said his government has snapped up $500 million in Argentine bonds to help the country free itself from the International Monetary Fund, which he likened to "Dracula."
In Argentina as part of a four-nation South American tour, Chavez also said Venezuela is pursuing bond deals with leftist allies in Ecuador and Bolivia -- deals seen as a major push by Chavez to spread his petro-dollar influence and counter U.S.-backed free-trade prescriptions.
Chavez praised Argentine President Nestor Kirchner for their close "friendship" and said Venezuela intends to purchase yet another $500 million in Argentine bonds in the coming months.
"Argentina is freeing itself from Dracula, breaking the chains of the International Monetary Fund," Chavez said at a Tuesday news conference before heading to Uruguay to meet leftist President Tabare Vazquez. Chavez also plans to visit Ecuador and Bolivia.
Chavez said Venezuela has acquired some $5.1 billion in Argentine bonds over two years. He said that other bond deals are being negotiated with leftists Rafael Correa of Ecuador and Evo Morales of Bolivia, with details to be announced "in due time."
In January 2006, Argentina repaid its entire remaining $9.6 billion debt to the IMF, a move Kirchner made in the name of greater economic independence.
Argentina defaulted on a record $100 billion in debt in 2001 but later renegotiated jilted creditors on terms of about 30 cents or less on the dollar.
The country's economy has grown robustly since a 2001-2002 financial meltdown. Kirchner was traveling elsewhere in Argentina on Tuesday and did not comment on terms of the bond swap.
Chavez's administration expects to repackage the Argentine debt with Venezuelan bonds for sale in the domestic market to soak up excess liquidity in the economy and serve pent-up demand for foreign exchange.
The Venezuelan government has profited by reselling Argentine debt, and has used such bond sales as a tool to beat back inflation, which last year reached 17 percent amid heavy government spending.
Chavez also said he plans to sign a series of "energy security" pacts with most countries on his stops, as he did with Argentina.
The energy agreement announced with Kirchner on Monday calls for cooperation on the distribution of natural gas through pipelines, joint oil refining projects and coordinated efforts on distributing power and alternative fuels.
Chavez also said Venezuela would invest in a regasification plant for liquid natural gas for Argentina, which is weathering an energy crisis. He said the plant could be completed within two years, and local reports said it would cost at least $400 million.
Meanwhile, leaders of Argentina's 200,000-plus Jewish community issued a statement opposing any further warming of ties with Chavez and objected to his visit here because of the Venezuelan president's close ties with Iran.
Argentina is seeking the arrest of five prominent Iranians and a Lebanese militant in the 1994 bombing of a Jewish community center in Buenos Aires. Eighty-five people were killed and 200 were wounded in the blast.
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