July 26, 2006
Venezuela and Argentina to issue joint bond

(Associated Press) - "Venezuela and Argentina will sell US$2 billion (euro1.58 billion) in a joint bond issue in September, the head of the congressional finance commission said

Rodrigo Cabezas in comments to The Associated Press cited a report from the Finance Ministry, which says both governments plan to issue the 'Bond of the South' during the month of September 'at the latest.'

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Each nation will assume US$1 billion (euro790 million) of the debt.

Finance Minister Nelson Merentes said recently that the new debt instrument would adhere to international regulations, allowing it to be traded easily on any market in the world.

It is the first time in the region that such a joint bond will be issued. Argentine President Nestor Kirchner has called the Bond of the South part of a larger plan to create new lines of finance on the continent.

Under President Hugo Chávez, Venezuela -- the world's fifth-largest oil exporter -- has used its surging oil proceeds to purchase debt from countries like Argentina and Ecuador as part of a bid to boost economic integration in the region.

is government since last year has purchased nearly US$3.1 billion (euro2.45 billion) in Argentine bonds to help the country meet debt repayments to international creditors following its economic collapse in 2001".