April 11, 2005
Venezuela's reserves had recovered to $25 billion

(Associated Press) - "Venezuela may use a part of its burgeoning $25 billion in currency reserves to pay off some debt and reduce its dependence on foreign creditors, Venezuela's vice finance minister said.

Eudomar Tovar said the oil-exporting country had made a spectacular economic recovery following the political crisis in 2002 and 2003, registering growth of 17.3 percent in 2004.

Speaking on the sidelines of the Inter-American Development Bank meeting in Okinawa, Japan, Tovar said Venezuela's reserves had recovered to $25.3 billion.

Tovar said no decision had been made yet on whether to use reserves to buy back debt. The central bank controls the reserves.

Tovar also suggested that the country's finances had been underrated by rating agencies, despite Venezuela's impressive economic growth, and declining inflation and unemployment.

Inflation in 2004 was 19.2 percent and unemployment was 12 percent, well down from 2002, when inflation peaked at 31.2 percent and joblessness hit 18 percent.

Tovar said Venezuela compared favorably with other Latin American countries.

'Most of the other countries don't have the muscle ... that we do, but they have better ratings,' he said. 'Investors want Venezuelan paper, investors want to invest in Venezuela.' (.)".