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Argentina, Brazil, Colombia balk at $500M CAF loan to Venezuela

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Argentina, Brazil, Colombia balk at $500M CAF loan to Venezuela

Argentina, Brazil and Colombia voted against a $500 million loan from Latin American development bank Banco De Desarrollo De América Latina to the government of Venezuela, Uruguay-based El País reported.

According to the publication, the bank, known as CAF and based in Venezuela, approved the loan, though several of the development bank's member countries opposed the move. The countries reportedly cited the controversial re-election of President Nicolás Maduro in May 2018 and its dire economic situation for the negative vote.

Argentina reportedly argued that Venezuela does not offer "a clear picture of how its future commitments with CAF will be addressed," and there was "significant risk of non-payment, given the country's financial situation." In addition, the vote was based on concerns that the loan would drag CAF's ratings down, El País reported.

Unnamed sources within the government in Buenos Aires told the publication Argentina strengthened its position on lending from CAF to Venezuela after deepening its alliance with the U.S. against Maduro's socialist government.