Identifier
Created
Classification
Origin
08CARACAS1562
2008-11-10 16:54:00
CONFIDENTIAL
Embassy Caracas
Cable title:
GBRV ANNOUNCES FORMATION OF JOINT DEVELOPMENT BANK
how-toVZCZCXYZ0016 PP RUEHWEB DE RUEHCV #1562 3151654 ZNY CCCCC ZZH P 101654Z NOV 08 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC PRIORITY 2125 INFO RUEHBO/AMEMBASSY BOGOTA 7905 RUEHLP/AMEMBASSY LA PAZ NOV LIMA 1114 RUEHQT/AMEMBASSY QUITO 2928 RUEHMO/AMEMBASSY MOSCOW 0318 RHEHNSC/NSC WASHDC RUMIAAA/HQ USSOUTHCOM MIAMI FL RUCPDOC/DEPT OF COMMERCE RUEATRS/DEPT OF TREASURY
C O N F I D E N T I A L CARACAS 001562
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR JSHRIER
COMMERCE FOR 4431/MAC/WH/MCAMERON
E.O. 12958: DECL: 11/10/2018
TAGS: ECON EFIN VE
SUBJECT: GBRV ANNOUNCES FORMATION OF JOINT DEVELOPMENT BANK
WITH RUSSIA
Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b)
and (d).
C O N F I D E N T I A L CARACAS 001562
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR JSHRIER
COMMERCE FOR 4431/MAC/WH/MCAMERON
E.O. 12958: DECL: 11/10/2018
TAGS: ECON EFIN VE
SUBJECT: GBRV ANNOUNCES FORMATION OF JOINT DEVELOPMENT BANK
WITH RUSSIA
Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b)
and (d).
1. (U) The Government of the Bolivarian Republic of
Venezuela (GBRV) announced November 8 that Russia and
Venezuela had agreed to create a binational bank and that
Finance Minister Ali Rodriguez would travel to Russia the
following week to finalize details. Rodriguez and an
official from Russia's Ministry of Finance signed a
memorandum of understanding for the bank's establishment
during the conclusion of the fifth meeting of the
Russia-Venezuela High-Level Intergovernmental Commission. A
GBRV press release said the bank would have an initial
capital of USD 4 billion but did not specify the amount of
each country's contribution. It appears the bank would
finance development projects in Venezuela.
2. (C) Comment: While this announcement reflects the GBRV's
desire to establish closer ties with Russia, it is unlikely
that this proposed bank will be operational in the near
future. The GBRV has inked agreements creating, or intending
to create, a number of banks and funds in line with its
international diplomacy, including Banco del Sur, ALBA
(Bolivarian Alternative for the Americas) bank, a binational
Venezuelan-Iranian bank, and the China-Venezuela joint fund.
These initiatives have not yet shown tangible results in
Venezuela, although the GBRV has received a USD 4 billion
loan from China for the latter fund. If oil prices remain
where they currently are, the GBRV will need hard currency to
prop up the Venezuelan economy in the coming year and will
have only limited access to international financial markets.
It will be interesting to see whether the Russians are
willing to help finance the GBRV and, if so, on what terms.
End comment.
GENNATIEMPO
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR JSHRIER
COMMERCE FOR 4431/MAC/WH/MCAMERON
E.O. 12958: DECL: 11/10/2018
TAGS: ECON EFIN VE
SUBJECT: GBRV ANNOUNCES FORMATION OF JOINT DEVELOPMENT BANK
WITH RUSSIA
Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b)
and (d).
1. (U) The Government of the Bolivarian Republic of
Venezuela (GBRV) announced November 8 that Russia and
Venezuela had agreed to create a binational bank and that
Finance Minister Ali Rodriguez would travel to Russia the
following week to finalize details. Rodriguez and an
official from Russia's Ministry of Finance signed a
memorandum of understanding for the bank's establishment
during the conclusion of the fifth meeting of the
Russia-Venezuela High-Level Intergovernmental Commission. A
GBRV press release said the bank would have an initial
capital of USD 4 billion but did not specify the amount of
each country's contribution. It appears the bank would
finance development projects in Venezuela.
2. (C) Comment: While this announcement reflects the GBRV's
desire to establish closer ties with Russia, it is unlikely
that this proposed bank will be operational in the near
future. The GBRV has inked agreements creating, or intending
to create, a number of banks and funds in line with its
international diplomacy, including Banco del Sur, ALBA
(Bolivarian Alternative for the Americas) bank, a binational
Venezuelan-Iranian bank, and the China-Venezuela joint fund.
These initiatives have not yet shown tangible results in
Venezuela, although the GBRV has received a USD 4 billion
loan from China for the latter fund. If oil prices remain
where they currently are, the GBRV will need hard currency to
prop up the Venezuelan economy in the coming year and will
have only limited access to international financial markets.
It will be interesting to see whether the Russians are
willing to help finance the GBRV and, if so, on what terms.
End comment.
GENNATIEMPO