April 14 (Bloomberg) -- Venezuela said it paid off $3 billion in loans owed to the International Monetary Fund and the World Bank this week, ending ties to two multilateral lenders it says curtailed its ``economic sovereignty'' for decades.
The government will save $8 million in interest payments with the World Bank through 2012, Finance Minister Rodrigo Cabezas said at a press conference at his office in Caracas. The government will continue to borrow money from the Washington- based Inter American Development Bank and the Caracas-based Andean Development Corp., to finance future infrastructure projects.
``With this we just want to say `bye' to these two institutions that imposed their police recipes to us for years,'' Cabezas said. ``It's a historic moment for Venezuela because our policy-making is finally gaining freedom back.''
Cabezas reiterated the government's goal of eliminating the nation's debt by 2021, and said the repayment of all obligations to the IMF and the World Bank puts the country on track to win investment-grade ratings.
Standard and Poor's Corp. and Fitch Inc. rate Venezuela a BB-rating, three levels below investment grade. Moody's Investors Service has a B2 rating on Venezuela's long-term debt.
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