Venezuela's Chavez says Brazil bank to offer $1-bln credit

Forbes.com-Reuters, 04.22.03, 6:22 PM ET

CARACAS, Venezuela, April 22 (Reuters) - Venezuela's President Hugo Chavez on Tuesday said the Brazil's National Development Bank would offer a $1-billion line of credit for Venezuelan projects as his government struggles to cover a deep financial shortfall. Leftist Chavez plans to hold talks on Thursday with his Brazilian counterpart Luiz Inacio Lula da Silva in Brazil, where he said officials would finalize the details of the credit agreement. "We will be shaping and putting the final financial touches to an agreement in which Brazil's National Development Bank has offered Venezuela ... a line of credit for up to $1 billion," Chavez said. The Venezuelan leader did not provide further details. Brazil's National Development Bank had previously provided financing for construction works such as an Orinoco River bridge in Venezuela. Venpres official state news agency said that the credit line would go to agricultural projects and small and medium industry. Venezuela's economy has slipped into sharp recession after a year of political conflict between Chavez and opponents demanding early elections in the world's fifth largest oil exporter. Chavez, a former paratrooper, survived a brief military coup in April last year. The nation's economy contracted nearly 9 percent in 2002 and many economists are forecasting a double-digit contraction for this year after a grueling opposition strike disrupted the oil shipments that account for half of government revenues.