Venezuelan fin min-cbank won't fix interest rates

The administration of President Hugo Chavez has berated the banking sector to tighten the spreads between lending rates - which average around 22% - and deposit rates, many of which don't keep pace with inflation. The annual inflation rate is running at about 13%.

The administration wants lending rates to be lower so that consumers and businesses will spend and invest more. Conversely, a higher deposit rate will encourage internal savings and discourage exchanging bolivars for dollars.

In the interview, Rojas ducked questions on the infrastructure ministry's reported desire to fix mortgage rates and end the indexing of such loans to salaries. Construction sector chiefs are saying a move along these lines would quickly damp any incentive private contractors would have to build. The government's housing construction target wouldn't be met they add.

In 2000, the executive branch says some 60,000 homes were built, about two-thirds of the target of 90,000. Private sector representatives, however, put the figure at 30,000 to 40,000.