President Hugo Chávez said he is using USD 7 billion from international reserves to fund agriculture, house construction, infrastructure works and other economic projects.

Late Wednesday, Chávez told the official TV channel VTV that the Central Bank of Venezuela (BCV) this year would have to transfer USD 7 billion from international reserves to the National Development Fund (Fonden), AP reported.

Venezuelan international reserves amounted to USD 37 billion ending 2006.

Chávez explained that the USD 7 billion would be invested in a number of projects intended to boost Venezuelan economic growth.

In 2006, Venezuelan economic growth was 10.3 percent of Gross Domestic Product (GDP) compared to 2005.

In 2005, the National Assembly passed a legislation under which a ceiling was set for international reserves and surplus reserves have to be transferred to Fonden.

As the world's fifth largest crude oil exporter, Venezuela has profited from high oil prices, which have allowed the country to increase fiscal revenues and international reserves over the last three years.