Economics &
Finance
Government plans to relax exchange
controls, calls for higher tax collection
Planning and Finance Minister Jorge Giordani says
exchange controls will remain, but with some modifications since he believes controls
are "absolutely necessary" within
Venezuela's economy. He also called for fiscal reform, saying domestic taxes
are only 12% of that should be collected due to evasion, overpricing exports,
manipulating foreign exchange and speculation. More in Spanish: (Últimas
Noticias, 10-29-2012; http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/gobierno-preve-flexibilizar--el-control-de-cambio.aspx; Infolatam,
10-29-2012)
Giordani: Inflation will be fought
with more production
The government is committed to increase production of
tomatoes, potatoes, onions and paprika, in order to meet the inflation target
for 2013, says Minister of Planning and Finance, Jorge Giordani. He said
Venezuela can be self-sufficient in these areas "that lead to higher prices." More in Spanish: (El Mundo,
10-29-2012; http://www.elmundo.com.ve/noticias/economia/politicas-publicas/giordani--la-inflacion-se-combatira-con-mas-produc.aspx)
Venezuela's food basket hits USD
427.64 in September
The average price of the standard food basket in
Venezuela amounted to VEB 1,881.96 (USD 427.67) in September 2012, according to
a report prepared by the National Institute of Statistics (INE).
The figure represents a 2.5% increase compared to August,
when the food basket price amounted to VEB 1,835.25 (USD 417.38). (El Universal, 10-29-2012; http://www.eluniversal.com/economia/121029/venezuelas-food-basket-hits-usd-42764-in-september)
Socialist plan calls for creating
450 communes per year
The communal State is under construction. You can feel it
in communities. The Government's plan, presented by President Hugo Chávez sets
the goal of "consolidating and
supporting the people's power during 2013-2019, which will lead to the creation
of 3,000 socialist communes, 450 communes per year, based on the demographic
characteristics of the country's territorial development axis. (El Universal, 10-29-2012; http://www.eluniversal.com/economia/121029/socialist-plan-provides-for-creation-of-450-communes-per-year;
http://www.eluniversal.com/economia/121029/venezuelas-public-spending-to-underpin-the-socialist-model-in-2013)
Giordani presents his arguments
against devaluating the bolivar
In a recent interview, Planning and Finance Minister Jorge Giordani
proposed seven reasons for not devaluating Venezuela's currency, he said: 1)
Currency needs are being met by SITME and CADIVI; 2) we have a flourishing
economy; 3) we do not need dollar denominated bonds, there is no need to pay
13% abroad; 4) we are applying planned indebtedness since early this year; 5)
China provides funding at rates under 13%; 6) many foodstuffs can be produced
domestically to abate inflation; 7) as to food imports - we can change consumer
preferences. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/8-razones-que-da-el-ministro-giordani-para-no-deva.aspx)
Commodities
Growing doubts two months after
explosion in Amuay refinery
More than 60 days have passed since the explosion
resulting from a gas leak in Amuay refinery (northwestern Falcón state). The
blast caused more than 40 deaths, six people missing, hundreds of injured, and
damages in hundreds of dwellings and stores neighboring the refinery that
belongs to state-run oil company Petróleos de Venezuela (Pdvsa) and is part of
the Paraguaná Refining Center (CRP). To date, no official findings have been
revealed concerning the causes of the gas leak that devastated the surroundings
of Amuay refinery, including a detachment of the National Guard, the enterprise
Puramin, and several stores, dwellings and buildings. (El Universal, 10-27-2012; http://www.eluniversal.com/economia/121027/growing-doubts-two-months-after-explosion-in-amuay-refinery)
Venezuela claims the EXXON lawsuit undermines
trust in international arbitration
Venezuela's defense team at ICSID claimed, "The fact that the plaintiffs are well-known
US companies that have managed to manipulate the international arbitration
system by pretending to be Dutch companies, undermines the trust that we may
feel towards international arbitration". (El Universal, 10-27-2012; http://www.eluniversal.com/economia/121027/venezuela-claims-that-exxon-lawsuit-seeks-its-ruin)
Electricity generation said to be
reaching 20,000 MW
Electric Energy Minister Héctor Navarro says electricity generation has
risen by almost 5,000 MW since the 2009 crisis and is not reaching 20,000 MW.
More in Spanish: (AVN, 10-30-2012; http://www.avn.info.ve/contenido/generación-eléctrica-nacional-se-ubica-casi-20000-megavatios;
http://www.avn.info.ve/contenido/ministerio-energía-eléctrica-cumple-tres-años-grandes-inversiones-curso)
International Trade
Turkey interested in Venezuelan oil
Turkey's ambassador to Caracas, Muhsin Tugrul Kiliçaslan, says a
bilateral Energy Cooperation Agreement has been recently signed between Turkey
and Venezuela, under which Venezuela sends oil to Turkey in exchange for the
construction of dwellings. "We
started the cooperation in the construction sector. It is a win-win situation
for both parties. You (Venezuela) need construction and we (Turkey) are very
good at it and we require oil," the ambassador remarked. (El Universal, 10-29-2012; http://www.eluniversal.com/economia/121029/turkey-interested-in-venezuelan-oil)
Logistics
& Transport
Vessels waiting to enter port
increased, government vows to improve operations
The weekend closed with 33 ships waiting at bay to enter
the port of Puerto Cabello. Members of the maritime community need to double
work shifts in order to speed up paperwork; and the state-run port authority,
BOLIPUERTOS, says it will set up joint committees with shippers in order to
improve operations in Venezuelan ports, after meeting with shipping line
representatives. "New work
commissions will be set up in order to tackle and propose mechanisms for
further approach between ports and its users, with the purpose of improving
port operations and boosting economic development." (El Universal,
10-29-2012; http://www.eluniversal.com/economia/121029/venezuelan-government-vows-to-improve-ports-operations;
and more in Spanish: El Carabobeño, 10-29-2012; http://www.el-carabobeno.com/impreso/articulo/37028/-cifra-de-buques-en-espera-de-ingreso-al-puerto-aument-y-se-ubic-en-33)
Politics
Controversial Defense Minister
suddenly replaced, nominated for Governor of Trujillo
In a surprise last minute move President Chavez replaced
his Defense Minister, General Henry Rangel Silva, who has repeatedly been
associated with drug trafficking complicity, and named him a candidate for
Governor of the state of Trujillo, one of the poorest and smallest in the
nation. Incumbent Governor and government party candidate Hugo Cabezas
hurriedly withdrew his nomination. Rangel Silva served as Defense Minister
since January this year and has been quickly replaced with Navy Chief, Admiral
Diego Molero. More in Spanish: (AVN, 10-30-2012; http://www.avn.info.ve/contenido/chávez-designa-almirante-diego-molero-como-nuevo-ministro-para-defensa;
El Universal, http://www.eluniversal.com/nacional-y-politica/121030/rangel-silva-pasa-de-ministro-de-defensa-a-candidato-en-trujillo)
Election Board allows pro government
candidates to register after process was closed
The United Democratic Opposition is calling for the
Elections Board to withdraw a decision to allow 7 pro government gubernatorial
candidates, and 101 other citizens to register in different states long after
the registration process was closed. Pro Government Board member Hernández has
called the decision an exceptional situation with insignificant impact, but
opposition representatives say it is illegal and will appeal to the Supreme
Court, as well as the Organization of American States and MERCOSUR. (El
Universal, 10-29-2012; http://www.eluniversal.com/nacional-y-politica/121029/former-electoral-body-member-requests-nullification-of-relocations;
and more in Spanish: El Nacional; http://www.el-nacional.com/)
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