Venezuelan government moves forward in bank with Russia

Russian authorities notified that the National Development Fund (Fonden) would be responsible for buying 49 percent of the shares of the new bank. The initial capital stock was set at USD 4 billion (File photo)

Economy
The 2010 annual report of the Venezuelan Ministry of Planning and Finances shows that last year two bi-national funds were established and steps were taken to organize a Russian-Venezuelan bank.

Based on the report, in order to organize the bi-national financial institution, shares in Evro Finane Mosnarbank were bought. However, there is not a breakdown of the invested amount. It is stated only that "this entity will be set to bolster the process of strategic alliance and funding of projects in the national interest in several areas."

Last October, Venezuelan President Hugo Chávez reported on the organization of the financial institution. Shortly afterwards, Russian authorities notified that the National Development Fund (Fonden) would be responsible for buying 49 percent of the shares of the new bank. The initial capital stock was set at USD 4 billion.

In addition to the Russian-Venezuelan bank, the Venezuelan government is to establish two additional funds with two other countries -Belarus and Ecuador.

Together with Belarus, the Fund for Strategic Development has spent USD 300 million in the building of 5,000 dwellings in central Aragua state; five plans on urban and rural development and micro-cities in the states of Barinas, Aragua, Táchira, Apure, Portuguesa, Cojedes and Guárico.

For its part, the Ecuador-Venezuela Fund for Development is aimed at sponsoring several projects, including the Route of Liberators, Fishery Grand-national Company and Mariscal Sucre Mining Grand-National Company.
marmas@eluniversal.com

Translated by Conchita Delgado

Mayela Armas H.
EL UNIVERSAL