Venezuela mulls buying Bolivian bank

The government of Venezuelan President Hugo Chavez may buy a majority share in a Bolivian bank, the president of a state-run bank said Saturday.

Luis Quiaro, president of the Industrial Bank of Venezuela, told the state news agency that officials were in ongoing talks with Bolivian authorities regarding the potential purchase.

"Our strategy is having majority participation in a bank from (Bolivia)," said Quiaro, adding that he could not name any of the banks that could be acquired because the issue was part of the negotiations.

Chavez, a sharp critic of Washington's foreign policy in Latin America, has forged strong political and economic ties with the government of Bolivian President Evo Morales.

The two leftist leaders have signed energy cooperation agreements, including a deal in which oil-rich Venezuela supplies Bolivia with up to 200,000 barrels of diesel a month. Venezuela is accepting 75 percent of the payment in agricultural goods and allowing the remaining 25 percent to be paid over 15 years at 2 percent interest.

Venezuela has also sent humanitarian aid to Bolivian flood victims, sent literacy volunteers to Bolivia and donated US$30 million (euro25 million) to Morales' government to help start social programs for the poor.