China strategic funds are the most important sources of funding
Caracas, 24 Febr. AVN .- The revolutionary government has made progress in the area of financing of investments, to qualify for a diversification of funding sources and modalities for strategic projects that run the national government, mainly after the establishment of the Fund and from the Chinese -Venezuela.

This was stated on Thursday Minister of Popular Power for Planning and Finance, Jorge Giordani, during his appearance before the National Assembly (AN) to be held in the Federal Legislative Palace in Caracas.

"The Fund and the funds made with the People's Republic of China are today the most important sources of resources that the country has to make strategic investments," Giordani said stressing the importance of these conventions.

In this regard he added that "it is prudent to note that these have been and are fundamental pillars for strengthening cooperation in trade, finance, technology and training with the largest economy in the framework of bilateral strategic partnership that allows further strengthen Venezuela's position in the international arena. "

Giordani said that among developed by the Executive funding is the creation of the National Development Fund (Fonden), which allows you to use and exploit resources efficiently in foreign exchange surplus, mainly from oil revenues channeled through PDVSA, and indirectly through international reserves held by the Central Bank of Venezuela (BCV).

Moreover, Giordani highlighted the creation of the Joint Financing Chinese-Venezuelan, for a total of 6,000 million dollars, which aims to strengthen bi-national plans through the implementation of financial mechanisms which can foster trade and investment between China and Venezuela.

"It should be noted that this fund was formed with a loan granted by the China Development Bank to Bank of Economic and Social Development of Venezuela (Bandes), the amount of 4 billion dollars and an additional contribution of 2 billion from the Fund, and subsequently in September 2008 following the signing of the section B of the agreement extended the financing of Chinese-Venezuelan fund to 12 billion dollars, "recalled the owner of Planning and Finance.

He remarked that after the signing of Sino-Venezuelan Fund continued to drive the relationship with China by signing the agreement that allowed the creation of the High Volume and Long-Term for an amount of 20 billion dollars.

Giordani said that the fund "is a finance two credit lines, both of 10 billion dollars," thus turning a facility of 20 billion dollars for the nation. "

"This new agreement in accordance with the provisions in the Official Gazette 39511 of 16 September 2010, is designed to finance large projects in infrastructure construction, social development, energy, mineral development, agriculture, and accelerate social and economic development of Venezuela, "he said.

Fonden and Chinese-Venezuelan Fund in 2010

Giordani Minister noted that during 2010 the fund received resources for U.S. $ 8.141 million, which were reinvested in the country "on sensitive areas of production and the generation of energy infrastructure and oil industry, in agriculture projects transport and communications, and basic industry projects. "

With regard to Sino-Venezuelan Fund, Giordani reported that following the creation of this financing mechanism has evolved during "the leverage of structural projects in different areas such as light and heavy industry, infrastructure, social participation, energy development and education."

He said that in 2010 "was released the amount from 2,209 billion have been earmarked for economic development projects" listed as follows: "8 projects for basic industries, 2 housing projects, 11 projects of transport and communications, project education, 31 projects in agriculture, 2 room, 5 for science and technology, 9 power projects and a project in trade. "

Other funding sources

Giordani Minister also stated that the Fund and the China-Venezuela Fund are other sources of funding that the Executive has used to leverage projects of importance to the country's development.

"These sources are: the Corporación Andina de Fomento (CAF), the Inter-American Development Bank (IDB) and the National Bank of Economic and Social Development of Brazil", he said.

He also mentioned that funding is signed "with multilateral and bilateral banks amounting to 3594.13 million for the electrical, environmental, transportation, social and industrial, with the objective of promoting growth and development nation's economic. "

"Proof of this was the signing of a loan agreement for 500 million dollars to finance the program of strengthening the national electricity based on Article 81 of Law of Partial Reform of the Organic Law on Public Financial Management, the which supported the republic in the emergency care effective in the electricity sector unveiled earlier this year, "he added.

24/02/2011 17:45