(Agencia Bolivariana de Noticias) - "The Minister of Finances, Rodrigo Cabezas, ratified that National Government's inflation goal this year is 12%. He showed his confidence that the issues of the public titles will contribute to reach this goal, because it shall allow to recollect an important portion of the local currency that is pushing the inflation.

In a press bulletin published by the Ministry for Finances, it was emphasized the confidence showed by the investors due to the issues of this year, where 85% of the Bonds of the South II holders are keeping their bonds and they do not have selling intentions.

According to the bulletin, there are estimations that the Consumer Price Index (CPI) will decrease during April, May, and June as the result of the Bonds of the South and Venezuelan oil company (Pdvsa-Spanish acronym) bonds issues.

Cabezas explained that these bond issues are part of an anti-inflation strategy carried out by the National Executive, which expects to recollect Bs. 13 trillion (about US$ 6 billion) of currency liquidity.

'If we add to this a significant reduction of the Value Added Tax (VAT) and the normalization of the food supply, then, we can feel optimistic that we are going to accomplish the inflation goal of 12%', he assured.

Finances' Minister forecasts that fractioned reduction of five points in the VAT will have a favorable bearing on the inflation variation between 2.5% and 3%.

He reiterated that one of the main goals of those bond issues is the democratization of the capital market, especially, small and medium savers.

Cabezas also reminded that the second Bond of the South issues will be aimed to the payment of the Venezuelan debt and Pdvsa bonds to finance the social Oil Sowing Plan.

'Those people investing in Pdvsa bonds are not only remunerating their currency saves, but they will also contribute with a high percentage of the US$ 60 billion, which is the amount to be invested by the state-own company next seven years in order to achieve the goal of increasing the production capacity from 3.3 million oil barrels to 5.8 million oil barrels a day', he stated".