Venezuela and Costa Rica Discuss Bond and Oil Deals
President Oscar Arias discussed development financing and oil deals with Venezuela on Friday, opening another front on which Venezuelan President Hugo Chavez might seek to extend his reach.

In a meeting with Venezuelan Foreign Minister Ali Rodriguez, the two discussed Costa Rica's proposal to sell government bonds to Venezuelan state development bank BANDES to fund infrastructure, education and security in the Central American nation, said Costa Rican Foreign Minister Bruno Stagno.

"This would give more fiscal space to the Finance Ministry," Stagno said. "Costa Rica's proposal in terms of amounts, time frames and interest rates will be forwarded soon for Venezuelan authorities to study."

The two nations also are finalizing a deal to allow Costa Rica to buy oil more cheaply from Venezuela than it now does and studying the possibility of Costa Rica receiving a credit line for development projects.

Venezuela, the world's No. 5 oil exporter, has signed scores of energy agreements with Latin American neighbors as part of President Chavez's efforts to provide oil on preferential terms to counter what he calls U.S. imperialism. Washington says the left-wing leader is a destabilizing force in the region.

Chavez signed energy cooperation deals with Panama this week and has made agreements with nations and communities from Bolivia to Nicaragua.

Arias is a proponent of free trade with the United States but he has also been known for bucking Washington. He won the Nobel Peace Prize in 1987 for defying the Reagan administration line and broker a peace agreement ending civil wars in Central America.

He has recently been embraced by some former critics in Washington as a free-trade backing moderate.

Stagno said Rodriguez and Arias did not discuss relations with the United States in their meeting.