National Developmwent Fund (Fonden) can not expect to receive any further financing from official reserves this year,

Caracas Daily Journal (Jeremy Morgan): Former Venezuelan Central Bank (BCV) director Domingo Maza Zavala said the National Developmwent Fund (Fonden) could not expect to receive any further financing from the official reserves this year, on top of the estimated $10 billion funnelled to it so far.

Maza Zavala, whose retirement has done nothing to slow his frequent comments on economic issues, said the BCV could only transfer moneys to Fonden as long as the reserves were deemed to be in surplus.

The latest estimate is that the reserves stood at $31.188 billion last Friday. The so-called "optimum" level of reserves is put at $30 billion, sufficient to pay for six successive months of imports.
The cost of imports rose sharply last year, as the Foreign Exchange Administration Commission (Cadivi) eased currency controls. The flow of imports is attributed to greater demand for imported supplies for local industry.  In addition, imports of food have risen substantially in response to persistent shortages. The generalized improvement in standards of living, particularly among better-off sectors of the population, has also boosted the number of people seeking hard currency to finance foreign travel.

Maza Zavala also noted that the national finances were still in deficit despite high world oil prices. He said a deficit equal to three percent of gross domestic product (GDP) was "tolerable."

Government spokesmen argue that Venezuela's deficit is lower than in other Latin American countries. However, most don't have oil – and those that do have it on a much less grand scale than Venezuela, the world's fourth or fifth largest oil exporter.  Unofficial estimates suggest that government spending will rise to $105 billion this year, compared with the 2008 budget target of $90.9 billion, which represents an increase of 40 percent on the $63 billion goal set for 2007.