Venezuela Pays Off Part of World Bank Debt

July 11, 2006, 8:43PM
Venezuela Pays Off Part of World Bank Debt

© 2006 The Associated Press

CARACAS, Venezuela — Venezuelan finance officials said Tuesday that the South American country has paid off 70 percent of the US$220 million (euro173 million) it owed the World Bank.

Since taking office, President Hugo Chavez has shunned traditional multilateral institutions in favor of regional lenders he finds less beholden to the U.S. government.

Criticizing the International Monetary Fund and the World Bank for demanding specific policy changes from developing countries in exchange for loans, he has pressed his oil-rich country to aggressively refinance its debts and pay off its loans.

She added, however, that World Bank officials continue to work with the government on four new developments projects that could require US$200 million (euro157 million) in new loans. The projects would involve water and sanitation in urban and rural areas, environmental protection, improving conditions in slums and community development for indigenous groups.

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