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Published on Jul 21, 2015


Despite its vast oil reserves, Venezuela has conceded it is unable to overcome an economic crisis caused by the collapse of its banking system.

A delegation from the Venezuelan government is seeking an I-M-F emergency loan that would help stabilise the South American country's economy.

Venezuelan Finance Minister- Luis Matos Azocar- met with I-M-F Director General, Michel Camdessus, Thursday in Washington D-C to negotiate an emergency loan that would help stabilise the country's tottering economy.

Matos said the initial talks had positive results.

SOUNDBITE: (In Spanish)

"Well, I would say that the talks we've started today with the International Monetary Fund examining the possibility of reaching a formal agreement as soon as possible, are being carried out in a very positive environment. Mr. Camdessus has been very understanding towards our goal which we call the Venezuela Agenda and in which we express that in order to achieve realistic goals, we must take into account the country's social and political conditions."
SUPER CAPTION: Luis Matos Azocar, Finance Minister of Venezuela

Analysts believe the requested loan could reach one-and-a half (b) billion (U-S) dollars.

Despite its vast oil reserves Venezuela is experiencing an economic crisis caused by the collapse of its banking system. The South American nation is in its third year of recession.

Economic analysts warn that a currency devaluation of more than 50 percent is imminent.

But the finance minister dismissed the rumors.

SOUNDBITE: (In Spanish)

"We do not plan a devaluation. We're in condition to maintain our reserves. We believe that our 10 (b) billion dollar goal is reachable for 1995 and consequently we're not making any plans to devaluate the currency."
SUPER CAPTION: Luis Matos Azocar, Finance Minister of Venezuela

It is estimated that 70 percent of Venezuelans are already at or below poverty levels.

Analysts say Venezuela may be asking the impossible given the fast drain on the country's national reserves.

Venezuela has an inflation rate of 71 percent and analysts believe there won't be any substantial growth this year.

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