CARACAS, May 2 (Xinhua) -- The Venezuelan government Wednesday dismissed Washington's criticism of its withdrawal from the International Monetary Fund (IMF) and the World Bank, saying that the decision was based on "economic and national sovereignty."

    Venezuela's Finance Minister Rodrigo Cabezas, in an interview with the local Union Radio, responded to U.S. State Department spokesman Sean McCormack's assertions that the Venezuelan government's decision would lead the country into isolation and sink it "in a bottomless well."

    That "is not true," Cabezas said, "on the contrary" the government of Venezuela under President Hugo Chavez will continue strengthening the country's finances worldwide "with the greatest possible liberty."

    "Venezuela's decision reflects its intention of not following the IMF's macro-economic adjustment policy it demands in exchange for loans," he said.

    Cabezas said that this decision was based on "economic sovereignty, national sovereignty and that is how it is considered" in Venezuela.

    Chavez announced Monday that his country had decided to withdraw from the IMF and the World Bank.

    The Venezuelan president, who has often blamed the lending policies of these organizations for perpetuating poverty, proposed the establishment of the Bank of the South, which would be run by Latin American nations to help countries facing financial difficulties.