Lender CAF not currently considering a loan to Venezuela -statement

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CARACAS, Oct 9 (Reuters) – Latin American development bank CAF said on Wednesday it is not currently considering a loan to Venezuela after opposition leader and Congress chief Juan Guaido said the regional lender was preparing financing for the struggling OPEC country.

Guaido said on Tuesday that CAF could provide some $400 million to mitigate the country’s economic crisis, but that the funds would not be administered by the government of President Nicolas Maduro, without elaborating.

“CAF is not currently evaluating a loan for Venezuela,” the bank said in response to an email from Reuters.

Venezuela is suffering from hyperinflation and a severe economic contraction, along with deterioration of public services including electricity. Guaido mentioned the possible CAF loan just before a parliamentary debate on the country’s chronic power problems.

Maduro’s government faces limited options for obtaining financing on international markets due to U.S. sanctions that have effectively blocked foreign lenders from providing funds and severely weakened its capacity to export crude.

Reporting by Mayela Armas; Writing by Corina Pons; Editing by
Will Dunham

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