U.S. Export-Import Bank Halts Venezuela Guarantees, WSJ Reports
By James Kraus
Washington, April 30 (<a href=quote.bloomberg.com>Bloomberg) -- The U.S. Export-Import Bank has halted providing loan guarantees and insurance for exports to Venezuela, the Wall Street Journal said, citing the government trade finance agency.
The suspension took effect April 17, the newspaper said. Venezuela's economy contracted 8.9 percent last year, in part because of a two-month general strike that crippled oil exports, drained reserves, and prompted the government to impose foreign exchange controls.
The halt in providing loans and guarantees is ``open ended'' and will continue until the bank decides repayment of loans can be assured, the paper said, citing bank spokesman Bo Ollison.
Antonio Herrera-Vaillant, vice president of the Venezuelan- American Chamber of Commerce in Caracas, said the export finance agency's decision would be ``devastating,'' the newspaper said.
``The imposition of something like this goes beyond (commercial) relations with the United States because when the Ex- Im Bank cuts you off, the world cuts you off,'' he said.
Venezuela imported $4.5 billion in goods from the U.S. last year and ranked as one of the agency's top 10 customers in fiscal 2002, obtaining $320 million in loans and import guarantees, the Journal said.
(WSJ 4-30 A15)
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