Venezuela authorizes dollars to cover private sector debt to Colombia

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Wednesday, May 28, 2003 By: Patrick J. O'Donoghue

Venezuelan Ambassador to Colombia, Carlos Rodolfo Santiago has confirmed that Venezuelan businessmen will receive dollars within 15 days from the government foreign exchange administration committee (Cadivi) to pay their Colombian creditors, "if they are registered, of course ... the dollars are ready ... the problem is that only 10% of businessmen that have debts have enrolled and presented all the necessary requisites. 

According to newspaper reports, Venezuelans owe $300 million to their Colombian counterparts and Santiago says some companies such as Colombia's main airline consortium Alianza Summa, consisting of Avianca, Aces and Sam have been exonerated in part. "Even though Avianca does not have representation in Venezuela, Cadivi has authorized dollars." 

The Ambassador has also denied charges from the anti-government Venezuelan-Colombian Chamber of Commerce that the government is refusing dollars to political opponents.

"The government is giving Venezuelan importers dollars to reactivate trade with Colombia, which took a 70% dive as a result of the December-January national stoppage ... $10 million has been set aside for importers ... it's small, but will gradually increase."

The Venezuelan government's decision to attend the debt problem was taken during a meeting between Venezuelan President Hugo Chavez Frias and Colombian President Alvaro Uribe in Puerto Ordaz last month.