[NYTr] Argentina Grateful for Venezuelan Bail-Out (US-Israeli anti-Iran Propaganda be Damned)

[All the News That Doesn't Fit]

[Certain vocal Jews in Argentina may be doing the bidding of the US and
Israel, but Argentina is paying no attention. -NYTr]

Bloomberg - August 7, 2007
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOKPvUm.ybwg

Venezuela Purchases $500 Million of Argentine Bonds

By Alex Kennedy

Venezuela bought $500 million of Argentine bonds yesterday and plans to
buy $500 million more in the next few months, part of plan to use a
surge in oil income to help regional allies.

Venezuelan President Hugo Chavez and Argentine President Kirchner also
agreed to cooperate on oil and gas exploration, production and
distribution projects during meetings this week. In addition, Venezuela
may buy bonds from Bolivia and Ecuador later this week, Chavez said.

``It's an effort for us to buy these bonds, but Argentina is freeing
itself from Dracula, from the dictates of the International Monetary
Fund,'' Chavez said today at a news conference in Buenos Aires
broadcast by the Venezuelan state television station.

Venezuela paid for the bonds with international reserves. The nation
has bought $5.1 billion of securities from Argentina since 2005,
helping its South American neighbor to avoid turning to international
markets after its 2005 debt restructuring prompted lawsuits from
bondholders in international courts.

The two countries plan to build a natural gas liquefaction plant in
Venezuela and a re-gasification plant in Argentina to help the nation
meet its growing natural gas needs. The Venezuelan president said
Argentina can count on access to all of Venezuela's oil and gas
reserves it may need.

Bolivar Rate

The government plans to sell the Argentine bonds with Venezuelan
bolivar bonds to Venezuelan investors to help meet demand for foreign
currency assets, Venezuelan Finance Minister Rodrigo Cabezas said last
week.

Dollar-denominated bond sales help meet demand for foreign currency
because the government allows Venezuelan investors to buy the debt with
bolivars.

Venezuela pegs the bolivar at the official exchange rate of 2,150 under
restrictions imposed in February 2003. Venezuelans turn to unregulated
markets when they can't get approval from the government's Foreign
Exchange Administration Commission to buy dollars through the
government at the official exchange rate.

Venezuela has sold $1.25 billion of Argentine bonds to Venezuelan
investors in two sales since November. 

                                     ***

AP via Miami Herald - August 8, 2007
http://www.miamiherald.com/news/americas/venezuela/story/196328.html

Chávez buys $500M in Argentine bonds, wants more

By Bill Cormier
The Associated Press

BUENOS AIRES -- Venezuelan President Hugo Chávez announced on a South
American trip Tuesday his government has snapped up $500 million in
Argentine bonds and is pursuing bond deals with leftist allies in
Ecuador and Bolivia.

At a news conference before flying to Uruguay on a swing that also will
include Ecuador and Bolivia, Chávez praised Argentine President Néstor
Kirchner for their close ''friendship'' and said Venezuela intends to
purchase another $500 million in Argentine bonds in the coming months.

The new deals and negotiations are seen as a major push by Chávez to
spread his petro-dollar influence and counter U.S.-backed free trade
prescriptions.

IMF CALLED `DRACULA'

Chávez called it another step to help an allied nation free itself from
the International Monetary Fund, which he likened to a vampire.

''Argentina is freeing itself from Dracula, breaking the chains of the
International Monetary Fund,'' Chávez said at a televised news
conference before heading to Uruguay to meet leftist President Tabaré
Vázquez.

Chávez said Venezuela has acquired $5.1 billion in Argentine bonds over
two years. Chávez said other bond deals are being negotiated with
Presidents Rafael Correa of Ecuador and Evo Morales of Bolivia, with
details to be announced ``in due time.''

In January 2006, Argentina repaid its entire remaining $9.6 billion
debt to the International Monetary Fund, a move Kirchner made in the
name of greater economic independence.

Argentina defaulted on a record $100 billion in debt in 2001 but later
renegotiated jilted creditors on terms of about 30 cents or less on the
dollar. The Argentine economy has grown robustly since the 2001-2002
financial meltdown.

ENERGY DEALS

Meanwhile, Chávez said he plans to sign a series of ''energy security''
pacts with most countries on his stops, as with Argentina.

The energy agreement announced with Kirchner on Monday called for
cooperation on initiatives, including the distribution of natural gas
through pipelines, joint oil refining projects and coordinated efforts
on distributing power and alternative fuels.

Chávez also said Venezuela would invest in a regasification plant for
liquid natural gas for Argentina, which is currently weathering an
energy crisis. He said the plant could be completed within two years,
and local reports said it would cost at least $400 million.

Leaders of Argentina's 200,000-plus Jewish community issued a statement
opposing any further warming of ties with Chávez and objected to his
visit because of the Venezuelan president's close ties with Iran.

                                ***

Dow Jones - August 7, 2007
http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20070807%5cACQDJON200708071717DOWJONESDJONLINE000619.htm

Venezuela Wants To Buy Or Build Refinery In Argentina -Chavez

By Raul Gallegos

CARACAS -- Venezuela wants to purchase or build a new refinery in
Argentina so it can ship crude to its South American neighbor.

"Right here we want to buy or build a refinery," President Hugo Chavez
said Tuesday during a televised press conference in Buenos Aires. He
didn't specify if state-owned company Petroleos de Venezuela is
contemplating planning to purchase a particular refinery.

In September 2005, PdVSA and Argentina's Enarsa said they would buy
Rhasa, a small oil company that controls a 7,000-barrel-a-day refinery,
but it's unclear what held up the deal.

Early this year, news reports also claimed PdVSA and Enarsa would soon
purchase Rhasa's assets. Both state-owned oil companies now jointly run
two gas stations in Buenos Aires.