Venezuela gives Antigua US$50M bailout

Venezuelan President Hugo Chavez has given the Antigua and Barbuda an "unconditional" US$50 million to create a stimulus package for the country's ailing economy and to pay public servants who have not been getting paid on time.

But despite this Finance Minister Harold Lovell says the government will have to go to the the International Monetary Fund (IMF) and other organisations for help.

Prime Minister Baldwin Spencer announced the Venezuelan aid Thursday shortly before the opposition Antigua Labour Party (ALP) staged a demonstration to protest the government decision to seek IMF help.

The "White March" was also intended to draw attention to increases in fuel prices and the ALP's other concerns about the way the Spencer administration is running the country.

"I am pleased to advise the nation that at one o'clock this morning (Thursday) President Hugo Chavez signed the necessary paperwork to approve the immediate transfer of the full amount of US$50 million to the government's call account at the Eastern Caribbean Central Bank" Spencer announced.

"This immediate and unconditional support from Venezuela can be attributed to the principles which underpin ALBA - that is, complementarily as an alternative to competition; solidarity as opposed to domination; cooperation as a replacement for exploitation; and respect for sovereignty rather than corporate rule."

Antigua and Barbuda signed the Bolivarian Alliance for the Peoples of Our America (ALBA) agreement in late June.

ALBA is an left-leaning international cooperation organization based upon the idea of social, political, and economic integration between the countries of Latin America and the Caribbean.

It's an attempt at regional economic integration that is not based primarily on trade liberalization but on a vision of social welfare, bartering and mutual economic aid. ALBA nations are in the process of introducing a new regional currency,

Spencer said all Antiguans will benefit from the deal."

"To civil servants who have been anxious about making preparations for the new school year at a time when salaries are late, I say that you can expect a reprieve; to the unemployed construction workers, I assure you that these funds will help to create new jobs for you; to the local merchants who have been providing the government with goods and services, you can expect payment on your accounts," the Prime Minister promised.

A delegation from Antigua and Barbuda will go to Caracas next week to make final arrangements for the money, half of which will be a grant and the other half a loan on preferential terms.

The exact conditions of the loan are yet to be determined. The finance minister said the money would close the fiscal gap for this year.