Venezuela Strengthens Ties with Central America

Caracas, January 16, 2008 (venezuelanalysis.com) -- Following a three-day whirlwind tour of Guatemala, Honduras, and Nicaragua, Venezuela's President Chavez returned today with strengthened ties between Venezuela and these Central American countries. During his trip, Chavez issued more statements on the troubled relationship between Venezuela and Colombia.

Chavez's first stop, on Monday, was Guatemala, where he attended the swearing in ceremony of the recently elected Guatemalan President, Alvaro Colom. Following a meeting with Colom, Chavez said that the two presidents had agreed to prepare a cooperation project in the areas of energy and social policy.

Next, Chavez travelled to Honduras, which was his first trip to this Central American country. There he met with President José Manuel Zelaya, who had invited him when the two met at the swearing in ceremony of Argentina's recently elected President Cristina Fernandez.

During their meeting, Chavez and Zelaya agreed that Honduras should join Petrocaribe, the energy association that Venezuela started in 2004 for Caribbean nations. Members of Petrocaribe may purchase Venezuelan oil with generous financing arrangements, whereby they pay off a portion of their oil bills over a 25-year period at 1% interest, among other benefits.

During his visit to Honduras, Chavez announced that on December 27 of last year, Venezuela forgave Honduras's entire debt to Venezuela, of $30 million, which it has owed since the 1980's. "We would be insensitive if we were to demand repayment for this debt," said Chavez.

Zelaya described Chavez as a "great man" who is the "most dignified" and "brave" representative of Simon Bolivar in the 21st century.

http://www.venezuelanalysis.com/news/3074