Rate of debt mark worrying trend
Sunday, August 15, 2010
Economists call for an explanation of debt to China. Indicate that the contract is void because it was not approved by the parliament through a special law.

Maria Ramirez Cabello
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The loan to China by 20 billion dollars will be given in dollars and yuan An important group of economists issued a document asking for explanations on the National Executive on debt to China by 20 billion dollars.

The document states that the signing of this loan to China in the form of oil sales in the future, "occurs in a context where PDVSA's debt has increased significantly. Thus, at the end of 2009, foreign currency liabilities of company totaled $ 75.212 million, representing an increase of 25% compared to 2008. For its part, PDVSA's financial debt at the end of 2009, reached U.S. $ 21,419 million, well above 2008 when it registered a surplus of U.S. $ 15,095 million. "

"The pace of this debt marks a worrying trend at a time of declining oil production and domestic consumption increases," says the letter of the economics profession.

They argue that the argument that the resources will be used to finance development projects in electricity, agriculture and gas has been used before.

"The electricity shortages, the decline of farming and the decline in gas production can not be attributed to lack of funding, because of oil revenues in real terms, Venezuela has received huge sums of foreign currency if had been used effectively have boosted domestic production and delivery of quality services, "underlined.

They add that "furthermore, in the last five years, the Central Bank's international reserves transferred from the Government over U.S. $ 36,882 million, which would be used to finance investment in the sectors mentioned above. Consumed inexplicably these resources now they go to the national debt with the same justification. "

They argue that this operation had not been approved by the National Assembly is void because Article 79 of the Organic Law of Public Sector Financial Management states that "the entities governed by this Act shall not enter into any transaction of public credit without permission National Assembly, issued by a special law. "

"Therefore, we, Venezuelans worried about the fate of the country, we request an explanation on the financial terms of the debt owed to China and to observe the rules established by law", concludes the document signed by Pedro Palma, Sary Levy, Hector Malave Mata, Orlando Ochoa, Hector Silva Michelena, Humberto Njaim, Jose Guerra, Jesus Casique, among others.