October 22, 2014 / 10:38 PM / 5 years ago

UPDATE 1-Venezuela says to avoid costly foreign borrowing

(Adds President Maduro’s quotes on OPEC and other details, paragraphs 3-6)

CARACAS, Oct 22 (Reuters) - President Nicolas Maduro said on Wednesday that the South American OPEC member would avoid more borrowing on international markets because of rising costs as a result of worsening credit risk perceptions.

“We are not going to use or ask for credit, in those conditions the global capitalist banks want to impose,” Maduro said in a speech on state TV. “We’re not going to do it. We have other (financing) sources, fortunately.”

Maduro, who said there was a “sort of financial, credit, international blockade” on the socialist-run country, repeated earlier statements that Venezuela was prepared for volatility on global energy markets.

Venezuela, which receives 96 percent of its foreign currency revenues from oil, has called for an emergency OPEC meeting to halt a slide in oil prices. Maduro said he hoped prices “bounce back and return to where they really should be.”

Venezuela’s push to hold an emergency meeting has so far appeared to fall on deaf ears. Maduro said, however, that Venezuela was mulling a response to falling oil price with allied countries.

“There will be soon be surprises with friendly OPEC countries,” he said, adding Venezuela’s alliances with China, Russia and some other members were growing stronger.

The country’s bond yields are currently the highest of any emerging market economy. Its debt on average pays 17.6 percentage points more than comparable U.S. Treasury bills, according to the JPMorgan Emerging Market Index.

Bonds have dropped 12.8 percent so far this year, driven by investors’ concerns about its capacity to pay. The overall index of emerging market bonds has risen 9.3 percent during the same period. (Reporting by Alexandra Ulmer, Brian Ellsworth, Andrew Cawthorne and Corina Pons; Editing by Grant McCool)

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