Venezuelan Daily Brief

Published in association with The DVA Group and The Selinger Group, the Venezuelan Daily Brief provides bi-weekly summaries of key news items affecting bulk commodities and the general business environment in Venezuela.

Tuesday, October 11, 2011

October 11th, 2011

Economics & Finance

PDVSA will pay interest this week on 2017, 2027 and 2037 bonds
In a press release, PDVSA announced that "according to the conditions," this Thursday it will pay out interest on bonds issued during in 2007. More in Spanish. (El Mundo, 10-10-2011;,-20.aspx)

70% of foods consumed locally are imported
According to statements by senior government spokesmen, 70% of food consumed by Venezuelans comes from abroad given the Government’s priority for avoiding shortages as experienced in early 2007. More in Spanish. (El Mundo, 10-10-2011;

What countries export beans to Venezuela?
President Chavez has said over half of the beans we eat are imported. He complained and proposed boost agriculture. According to the National Bureau of Statistics, the following countries send beans to Venezuela: China, Argentina, Nicaragua and Hong Kong. During the first half of 2011 Venezuela imported a total of 42,356 tons, 8% more than last year. More in Spanish. (El Mundo, 10-10-2011;¿de-que-paises-vienen-las-caraotas-que-compra-vene.aspx)

TAL CUAL says government incompetence is causing a national collapse
TAL CUAL daily says that countless and growing street protests and demonstrations, plus opinion polls, show that us as a country where almost nothing works, where basic public services are increasingly deteriorate, hurting both the economy and everyday living conditions for all people. More in Spanish. (Tal Cual, 10-10-2011;


Venezuela calls for discipline within OPEC
Energy and Petroleum Minister Rafael Ramírez says:"We firmly believe that we have to support unity and discipline, and correct what needs to be corrected, but the Organization of the Petroleum Exporting Countries (OPEC) is the only authority to coordinate oil policy" in petroleum producing countries. His remarks came after President Chavez twice proposed twice creating a new organization of "oil giants." Ramirez says Venezuela " will continue to protect OPEC, because there are several members that have a common interest with our country: to defend the price of oil because this commodity is a key element for our economic development." (El Universal, 10-10-2011;

Russia lends Venezuela U$D 4 billion in return for oil projects
Russia agrees to lend Venezuela U$D 4 billion through 2013 for defense spending in return for gaining access to heavy crude and offshore gas fields in the South American country, as Russia’s OAO Rosneft and OAO Gazprom signed a cooperation accord with Venezuelan state oil company Petroleos de Venezuela SA. The $4 billion defense loan will be disbursed in two equal parts in 2012 and 2013. The two countries agreed separately to commit U$D 2 billion each to boost the capital of a bi-national bank, known as Evrofinance Mosnarbank SA, that will provide lending for housing projects and a joint-venture oil project in the Junin 6 block. (Bloomberg, 10-07-2011;

Mining operations hit ethnic groups at the Essequibo
A report released in 2002 by The North-South Institute, a Canadian NGO dedicated to promote social justice, shows that the high number of mining licenses granted by the Guyanese government in the Essequibo territory is affecting indigenous communities in the area. Destruction of crops, desecration of sacred sites, erosion of soil, water pollution, and abuse of indigenous women are part of the acts of injustice suffered by the ethnic groups, the report added. (El Universal, 10-10-2011;

Guyana to supply rice to Venezuela
Guyana expanded and extended its rice export agreements with Venezuela to over 70,000 tons for U$D 54 million by upgrading the three previous contracts and the establishment of a fourth contractual arrangement. It is reported in Caracas that the price fixed for this importation is around 44% above international market prices. More in Spanish: (El Universal, 10-10-2011; and RUNRUNES, 10-11-2011;

Logistics & Transport

Airlines require refloating and adjusted airfares
In view of recent air incidents, Capitan William Brach, former President of the Chamber of Air Transport Companies says authorities and airlines must agree on a plan to refloat the sector and approve increases in airline tickets prices,.
About 80% of the aircraft comprising Venezuela's commercial air fleet are 35 years old. "This implies that maintenance is more demanding, frequent and preventive," rather than investing in new aircraft. (El Universal, 10-10-2011;

National Guard seizes 460 kilos of cocaine in Belgian ship
The Bolivarian National Guard seized this Monday 460 kilos of cocaine in Belgian ship Juergen Schulte, coming from Belgium that was anchored in a port of the Orinoco river in Bolivar state, Venezuela’s southeast.
The 22-people crew (of diverse Asian, European and African, nationalities) tried to transport the cocaine coming from Colombia to France. They have been all arrested by Venezuelan authorities. (AVN, 10-10-2011;

31 machines to execute operations in the country’s ports will arrive to the country in the next few days, among them 13 Reach Stacker cranes and 19 terminal tractors. Bolivariana de Puertos S.A. (BOLIPUERTOS) authorities made the announcement and pointed out that the fleet in Venezuelan sea terminals will improve with these equipments. (Veneconomy, 10-10-2011;


Chavez travels to Cuba this weekend for medical examinations
President Chavez will travel to Havana, Cuba, this weekend, and remain for several days to undergo examinations to confirm the absence of cancerous cells in his body. “I have to go to Havana to spend some days there because I shall go now through very rigorous tests, with some of the most advanced scientific methods in the world. Here I am, in this week that is beginning, under medical observation, doing exercises, walking, sunbathing,” he said. (AVN, 10-10-2011;

UN to approve Human Rights Report on Venezuela
The United Nations Human Rights Council will this week approve a Human Rights Report on Venezuela, including advice, points rejected by Venezuela, and points to be submitted to consultation by member States. Venezuela has presented its report for the Universal Periodical Review on Human Rights (UPR). A group of three UN rapporteurs (Guatemala, Burkina Faso, the Czech Republic) has been randomly selected and is in charge of drafting the final document. (AVN, 10-10-2011;; El Universal, 10-10-2011;

Drugs found aboard the “Juergen Schulte” at the FERROMINERA docks in Guayana
The National Guard seized some 460 kilos of drugs hidden within the machine room of a ship named “Juergen Schulte” that came from Belgium and docked at Ferrominera Orinoco (Ciudad Guayana) ostensibly to load iron ore. 22 persons, all foreigners, were detained. The ship’s identity was not confirmed, although military sources say it may be Liberian. Other possible drug shipments are being investigated. More information in Spanish. (Correo del Caroní, 10-09-2011;

IVAD Survey said that Chavez win elections with more than half of the votes against opponents
A survey by the Instituto Venezolano de Datos (IVAD) between September 24 and October 2, 2011 states that if presidential elections were conducted currently the President of the Republic, Hugo Chavez would win with 53, 7% of the votes of confronting the current governor of Miranda, Henrique Capriles Radonski (who obtained 34.6%), with 54.1% if the container was the former mayor of Chacao Leopoldo López (33.7%), and 54.3% facing the governor of Zulia, Pablo Perez, who achieved 32.4% of the vote. More in Spanish. (AVN, 10-10-2011;

The following brief is a synthesis of the news as reported by a variety of media sources. As such, the views and opinions expressed do not necessarily reflect those of Duarte Vivas & Asociados and The Selinger Group.

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