CARACAS, Venezuela (AFX) - Venezuela has purchased a total of US$3.1 billion (euro2.43 billion) in Argentine bonds since last year, the finance minister said Tuesday.
Under President Hugo Chavez, Venezuela -- the world's fifth-largest oil exporter -- has used its surging oil proceeds to purchase debt from countries like Argentina and Ecuador as part of a bid to boost economic integration in the region.
Finance Minister Nelson Merentes said the government has pocketed US$201 million (euro157.82 million) in gains by reselling US$2.4 billion (euro1.88 billion) worth of bonds to 33 local banks.
Merentes also said that details would be announced within 90 days on plans by Argentina and Venezuela to also issue a joint government bond on international capital markets.
'It's a completely new instrument. Something that has never been done in the region,' Merentes told reporters, saying it would offer investors, 'a more regional risk exposure.'
Merentes said the new bond will submit to international legal regulations, he said, and will offer benefits to both countries.
Argentine President Nestor Kirchner announced plans for the joint 'Bond of the South' earlier this month after meeting Chavez, calling it part of a larger plan to create new lines of finance on the continent.
Venezuela's bond purchases, which began last year, have helped Argentina meet debt repayments to international creditors following its economic collapse in 2001. Chavez's government also assisted Ecuador by buying US$25 million (euro19.63 million) in government bonds in 2005.
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