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Venezuela explores another bizarre investment in Uruguay

By Tony Pagliaro

04.01.06 | “Banco de Desarrollo Económico y Social”, a financial state-owned agency from Venezuela, seems to be actively negotiating taking a 25% participation in the Uruguayan financial cooperative: “COFAC”, which is known to be in a rather difficult financial situation.

For such a purpose, discussions are been held, according to the media, with the objective of making a new 5 to 10 million US dollars Venezuelan minority investment into “COFAC”’s capital structure.

“COFAC” is an institution that lends monies to persons who normally do not -and cannot- qualify to obtain credits from other Uruguayan financial institutions. Its main strategy seems to be now concentrated in granting primarily (through its network of branches spread out through the oriental territory) small loans to finance low income Uruguayan citizens’ basic consumption needs.

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