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Venezuela's Supreme Court allows congressional bypass in multilateral borrowing

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Venezuela's Supreme Court allows congressional bypass in multilateral borrowing

Venezuela'sSupreme Court ruled in favor of allowing the country's central bank, , to pursuea loan from a multilateral agency without gaining approval from the congress, Reutersreported July 21.

The countryis looking to borrow $1 billion from the Colombia-based Latin American ReservesFund, or FLAR, to boost its dwindling international reserves, local reports said.Such a move is now possible given the new court ruling, allowing President NicolasMaduro's government to bypass the opposition-led congress.

The court statedthat a likely loan contract would be "carried out through an internationalagreement, and in consequence … is not subject to the authorization of the NationalAssembly," Reuters noted.

Meanwhile, oppositionlawmaker Jose Guerra said that through the ruling, the court is helping Maduro veeraway from the congress' opinion, adding that the FLAR argued that the country needsthe legislation's approval before it could get a loan.