March 22, 2005
Argentina returns to capital markets, Venezuela promises to buy

(Argentine newspaper Ámbito Financiero, reproduced by BBC Monitoring Service) - "In April Venezuela will make its announced purchase of up to 500m dollars in new Argentine public debt, Edgar Hernández, the Deputy Minister of Finance for endogenous development, reported. Hernández, who is also president of the Economic and Social Development Bank (Bandes), indicated that Venezuela is still 'studying' the procedure for purchasing the bonds, the state-run news agency ABN reported.

He did make known an interesting piece of information for the market, however: the purchase will be of bonds that Argentina will be issuing soon and that mature in 2012.

Thus, the remarks by the Venezuelan official are certainly in keeping with last announcements by Economy Minister Roberto Lavagna about Argentina's return to the market with new debt (...)

The public debt purchase was announced on 2 March in Montevideo by Venezuelan President Hugo Chávez during his visit to Uruguay to attend the inauguration of that country's new president, Tabare Vazquez, who belongs to the Socialist Party. Hernández said that Argentina 'is going through a period of economic recovery and growth, as GDP grew by around 7 per cent last year'.

Venezuelan Finance Minister Nelson Merentes defended the purchase by Caracas. 'it is a move 'to further Latin American integration and understanding among countries of the south', he said",