Venezuela Sells Argentine Bonds to Banks

[Judi Lynn]

Jan. 3, 2006, 9:56PM
Venezuela Sells Argentine Bonds to Banks


By FABIOLA SANCHEZ Associated Press Writer
© 2006 The Associated Press

CARACAS, Venezuela — The Venezuelan government has sold $600 million in Argentine bonds to local banks, a profitable business that has helped the country diversify its investments away from U.S. debt, the finance minister said Tuesday.

The bonds that were sold were part of $1.6 billion in Argentine debt Venezuela acquired last year in a bid to help Argentina meet its repayments to international creditors. Argentina amassed heavy debt from its 2001 economic collapse.

Finance Minister Nelson Merentes told The Associated Press that the purchase of Argentine debt was "a good business for Argentina and a good business for Venezuela."

Venezuela also acquired $25 million of Ecuadorean government debt at the end of 2005 and has expressed interest in buying European and Asian debt as part of its strategy to reduce the weight of U.S. debt in its portfolio.
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http://www.chron.com/disp/story.mpl/ap/business/3563659.html
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