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Venezuela Bank "Bandes" to Expands in Latin America; Branch in Haiti

(AP) CARACAS, Venezuela

Venezuela's state development bank plans to open branches in Bolivia, Honduras, Guatemala and Haiti, the bank president said Wednesday.

"We foresee opening offices in Haiti, Guatemala and Honduras," said Edgard Hernandez Behrens who heads the Bank of Economic and Social Development, or Bandes, which is 75 percent owned by the Venezuelan government.

Bandes also plans to provide US$15 million (euro12 million) in December to its Uruguayan branch, known as Cofac, and is further considering providing funds for its Union branch in Bolivia, Hernandez Behrens said.

President Hugo Chavez, whose country is the world's fifth-largest oil exporter, has lent millions for cooperative projects with friendly Latin America governments.

In March, Bandes officials purchased Cofac, an Uruguayan credit cooperative, for US$10 million (euro8 million) and injected an additional US$10 million (euro8 million) to capitalize it.

Chavez's government has also signed agreements with the administration of Bolivian President Evo Morales, a close ally, which have included a donation of US$30 million (euro24 million) for social programs for the poor in the Andean country.

Chavez says he is promoting regional integration through such efforts, but his critics accuse him of squandering Venezuela's oil wealth overseas and failing to do enough to combat poverty at home.