With US$ 5 Billion at Stake, Brazil Seeks to Keep Venezuela From Defaulting

09/22/2017 - 11h14

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ISABEL FLECK

SPECIAL ENVOY TO NEW YORK

While in New York, on Thursday (the 21st), Brazil's Finance Minister Henrique Meirelles said that Venezuela will try to make an effort to avoid defaulting on contracts with Brazilian companies because they won't want to "make yet another enemy".

A Folha article from Thursday had already anticipated that the Brazilian government will be sending representatives from the Central Bank and the Finance Ministry to Caracas in order to negotiate with authorities and try to keep Venezuela from defaulting. A total of R$ 15 billion (US$ 5 billion) are at stake.

"I believe that they are interested in maintaining reasonable, good and productive relations with Brazil: an important and big neighbor", said Mr. Meirelles.

"I don't think they'd be interested in making yet another enemy. I'm not saying that this [default] would lead to that. What I'm saying is, all parties are interested in treating this subject in a way that is serious, but also just", he said.

"Brazil must defend its own interests. They're trying to defend their interests because they're in a difficult situation and that's normal", he pointed out. "Everyone knows that Venezuela is in a very difficult situation. And we're working hard with that in mind."

Earlier this month, Venezuela fell into arrears on an R$ 820 million installment (US$ 262 million) owed to Brazilian companies.

Most of the money in question is connected to infrastructure projects undertaken by construction firms Odebrecht, Andrade Gutierrez and Camargo Corrêa, all of which resorted to financing from the Brazilian Development Bank (BNDES).

Translated by THOMAS MATHEWSON

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