(Prensa Latina) - "The second issue of the Bond of the South, a joint initiative by Argentina and Venezuela, represents a strategic element against inflation, Venezuelan Finance Minister Rodrigo Cabezas sustained.

In an interview for 'En Confianza' TV program, the official indicated the official issue of the bond also aims at financial integration.

The Project will allow reducing liquidity levels by around 1.4 billion dollars, which will be complemented with new issues by PDVSA state oil company and others by the government.

All those actions, Cabezas added, will take place in the framework of sums approved this year in the debt law, without affecting the 2007 projected budget.

The objective of the economic cabinet is to achieve an inflation rate of 12 percent this year, 'without recession, wage cuts, affectations for the people, or suspension of investment programs,' the official indicated.

The Bond of the South is also supported by the Venezuelan and Argentinean economies, with excellent compensation terms that will be disclosed Monday, Cabezas stated".