Chavez looks to borrow from Brazil
Venezuelan President Hugo Chavez, whose government is facing cash shortages as oil revenues decline, is negotiating loans from Brazil's state development bank to fund projects, a Brazilian newspaper reported on Friday.Brazil is making a mistake if it loans this dead beat any money. So are the large Brazilian companies. Chavez has a history of taking over businesses whether they make money or not.
The investment projects, which involve the participation of large Brazilian companies, would allow Chavez to stimulate Venezuela's economic growth without having to tap his country's dwindling cash reserves, the Folha de Sao Paulo daily said, as reported by Reuters.
The Brazilian Development Bank (BNDES) is a state bank and Brazil's biggest lender to companies.