MercoPress. South Atlantic News Agency

As broke and polarized as ever.

Venezuela's Finance Minister Tobías Nóbrega admitted that his country's economy would contract 10/11% in 2003 with inflation reaching 30%. However he anticipated the economy would expand 5% in 2004, with the non-oil sector growing 12,5%, “given the greater exchange rate flexibility expected”.

Second quarter figures indicate Venezuela's GDP contracted 9,4% compared to the previous year and annualized inflation in August stood at 30,4% when in the same months in 2002 it had a projection of 24%.

Mr. Nobrega made the announcements during a tour of European capitals with the purpose of purchasing and swapping Venezuelan bonds from the nineties under the Brady Plan.

Many emerging countries in the nineties restructured their debts in Brady bonds (former US Secretary of the Treasury) with the support from US federal bonds.

Venezuela, one of South America's richest countries in resources is the fifth world oil exporter but under current president Hugo Chavez the country is completely polarized politically and paralyzed financially.

Mr. Chávez an admirer of Cuban president Fidel Castro and a severe critic of "selfish private property" and "rich countries capitalist exploitation" last year survived a military coup and a two months general strike sponsored by the local business community.

His opponents are now demanding a mid term referendum on his administration as contemplated in the current Venezuela constitution tailor made by President Chavez.