VENEZUELAN PRESIDENT DEFENDS REFINANCING ACCORD

  president jaime lusinchi defended the
  20.3 billion dlr debt rescheduling accord his government
  recently signed, saying it will open new credit flows and bring
  needed foreign investment to venezuela.
      In his annual state of the nation speech, lusinchi also
  said venezuela supports other latin american debtors, despite
  having reached a rescheduling accord on its own.
      In the 90-minute speech to the congress, lusinchi summed up
  the achievements of his administration, which took office in
  february 1984. He pointed to the 3.3 pct growth in non-oil gdp
  in 1986 and to a "moderate" 12 pct inflation rate.
      Lusinchi said the 20.3 billion dlr debt rescheduling signed
  feb. 27 put an end to a process which had been 'the calvary of
  our nation over the post four years.'
      In the refinancing accord, he said, venezuela managed to
  achieve 'the most inmportant thing, which is the reopening of
  financial flows from abroad, essential for the financing of
  development and the (financing) of trade and investment.'
      Once all the details of the agreement are finalized, he
  said, venezuela will seek new financing for the imported
  components of new development projects.
      "our intention is not to continue being net exporters of
  capital, but to protect our balance of payments with a flow of
  capital towards venezuela," he said.
      Under the agreement signed february 27, venezuela extended
  payments on the debt from 12 to 14 years, while the interest
  rate was lowered from 1 y 1/8 to 7/8 of a pct over libor.
      At the same time, payments over the next three years were
  lowered from 3.450 to 1.350 billion dlrs.
      Lusinchi defended the rescheduling accord against critics
  who said it merely deferred the weight of payments to future
  governments.
  

