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Maduro will not oversee proposed $400M credit line from CAF, Guaido says

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Maduro will not oversee proposed $400M credit line from CAF, Guaido says

Venezuelan opposition leader Juan Guaido said Latin American development bank Banco de Desarrollo de América Latina, also known as CAF, has proposed a $400 million credit line for the country to help it mitigate the impact of a five-year recession, Reuters reported.

Guaido told parliament that the loan will not be overseen by the administration of President Nicolas Maduro, who is no longer recognized as Venezuela's rightful leader by dozens of countries after he allegedly rigged his re-election in 2018.

"Those who don't pay don't get loans," Guaido said in a reference to Venezuela's default on its foreign debt. However, he did not specify any alternative arrangements with the CAF.

The Caracas-based lender, which is owned by 19 countries and 13 private banks in Latin America and the Caribbean, approved a $500 million credit line for Banco Central De Venezuela in December 2018. Argentina, Colombia and Brazil reportedly attempted to block that loan as opposition legislators criticized the CAF for supporting a "dictatorship."

Venezuela is mired in a deep economic crisis with inflation expected to hit eight digits this year. Foreign sanctions and a mass exodus of the population have added to those problems.

The CAF did not respond to a Reuters' request for comment, while Maduro's government did not immediately comment either.