Venezuela Considering $1.5 Billion Debt Buyback

Venezuela may tap into funds raised from a bond sale in April to buy back $1.5 billion worth of government debt, said Ricardo Sanguino, a lawmaker and president of the National Assembly's finance committee. Sanguino discussed the repurchase of bonds with representatives from the finance ministry two weeks ago, he told reporters today in Caracas after a committee meeting. Speculation about a possible debt buyback has caused Venezuela bonds to gain over the past two months. The government's benchmark 9.25 percent dollar bond due in 2027 has risen 6 cents on the dollar to 92.85 cents since May 13. A spokesman at the finance ministry declined to comment on a possible buyback. Lawmakers also approved additional spending of 32 million bolivars ($1.49 million) beyond the government's 2008 budget. So far this year, the committee has approved 24.4 billion bolivars in extra spending, Sanguino said.