Economics &
Finance
Economic authorities said to
disagree over exchange policy
Heated arguments are reported among representatives for
PDVSA, the Central Bank and the Ministry of Planning and Finance, as the
Ministry has - since September - refused to supply bonds to the SITME exchange
system that operates within the Central Bank, and with PDVSA saying it requires
a new bond issue to repay funds advanced by the Central Bank. According to an
inside source, the Ministry, headed by Jorge Giordani, shut down the supply of
bonds used to allocate currency to importers on a list controlled by Giordani
himself, thus worsening dollar shortages in the local market. More in Spanish:
(El Nacional, 11-20-2012; http://www.el-nacional.com/)
SITME operations estimated at
minimum levels
A report by SINTESIS FINANCIERA shows that over the past
three weeks SITME operations have gone down to "two year minimum levels, precisely as seasonal demand has been rising
since August". SITME currency allocations had risen by 56% through
September, thus compensating stagnant CADIVI allocations, but diminished FOREX
availability has restricted SITME operations as well. Yesterday, the system
processed a mere U$D 21.13 million. More in Spanish: (El Universal, 11-20-2012;
http://www.eluniversal.com/economia/121120/estiman-que-operaciones-en-el-sitme-llegan-a-niveles-minimos)
Central Bank disposable reserves
down to U$D 1.6 billion
Central Bank financial statements show that disposable
reserves have been dropping since August. Disposable reserves earmarked for
imports and debt repayment fell to U$D 1.6 billion from U$D 1.8 billion in
September, which is beneath the U$D 2-5 billion estimated as necessary by bank
president Nelson Merentes. More in Spanish: (El Universal, 11-20-2012; http://www.eluniversal.com/economia/121120/reservas-liquidas-del-bcv-bajan-hasta-16-millardos)
National Land Institute says it has
"rescued" 1.11 million hectares in 21 months, claiming they were "in the hands of large landowners".
This is a 206% increase in land takeovers over 2010. More in Spanish: (El
Universal, 11-20-2012; http://www.eluniversal.com/economia/121120/111-millones-de-hectareas-ha-rescatado-el-inti-en-21-meses)
Growing imports underscore the
failure of Venezuela's agriculture
One of the unfulfilled promises by President Chavez since
he took office 14 years ago was to transform Venezuela into a large agricultural
producer. The promise remains among the goals for the next six-year term. (El Universal, 11-19-2012; http://www.eluniversal.com/economia/121119/growing-imports-show-the-failure-of-venezuelas-agrarian-model)
Industry slumps to 1960's levels
The boom in oil prices conceals the critical state of local
industry as imports have been the only way to meet growing demand. Central Bank
data reveals signs of a weakened industry with industrial GDP for the first
semester 2012 matching the same 14% it recorded in 1965. Economist José Guerra points
out that this indicator shows that the national industry's production is
similar to what it was five decades ago. (El Universal, 11-19-2012; http://www.eluniversal.com/economia/121119/venezuelas-industry-slumps-to-levels-recorded-fifty-years-ago)
Management of state-owned companies riddled
with inefficiency
President Chavez has pledged to implement tougher
measures against inefficiency in the state-owned companies, as most projects
started by his government have failed over the past years. (El Universal, 11-17-2012; http://www.eluniversal.com/economia/121117/management-of-state-owned-companies-is-filled-with-inefficiency)
Stock market up 228%
Venezuela stocks rose sharply the week ending November 16, with the
Caracas Stock Index increasing by 4.1%, closing at 383,419. Envases Venezolanos
was the leading gainer, up 51% at Bs. 100; followed by Corimon up 22% at Bs.
380; Fondo de Valores Inmobiliarios B, up 16.7% to Bs. 14. Manpa was the only
stock losing ground, down 14.2% to Bs. 4.5. All other stocks were flat or did
not trade. The Venezuela Stock Market is now up 227.61% for the year to date.
(Latin American Herald Tribune, 11-19-2012; http://www.laht.com/article.asp?ArticleId=642061&CategoryId=10717)
Commodities
FERROMINERA denies raid
Sources within FERROMINERA, the main State iron ore
company, reported that agents from the Military Intelligence Department (DIM),
the Defense Ministry's security agency, are investigating the irregular dispatch
of trucks laden with iron ore from the main operating headquarters of the main
State owned iron ore enterprise , destined to ports from which the ore is
shipped abroad. They say operation aims at an intricate system of contacts and
corruption, yet the DIM investigation has so far aimed at establishing
responsibilities by personnel within the contingency and road control
department, and the loss prevention and control section of FERROMINERA's Asset
Control Management. The company has issued no statement about the presumed
breach in controls at the state owned company, at points were outgoing product
is verifies and approved. A worker says "This has been going on for a long
time", and added that DIM is investigating some 16 company officers. FERROMINERA
President Radwan Sabbag has denied the reports. More in Spanish: (El Universal, 11-20-2012;
http://www.eluniversal.com/economia/121120/ferrominera-descarta-trafico-ilegal-de-mineral-de-hierro; Correo del Caroní, 11-19-2012; http://www.correodelcaroni.com/index.php?option=com_content&view=article&id=217189:dim-interviene-gerencia-de-fmo-por-extraccion-ilegal-de-mineral&catid=75:laboral&Itemid=114)
Shinsho plans U$D 300 million
Venezuela steel investment
Japan’s Shinsho Corp. plans to invest more than U$D300
million in the Venezuelan steel industry in the Guayana region, El Mundo
reported. Shinsho is holding meetings
today with officials from state-run companies including Siderurgica del
Orinoco, or Sidor, the Caracas-based newspaper said. (Bloomberg, 11-19-2012; Shinsho
Plans $300 Million Venezuela Steel Investment)
PDVSA increases imports of
components for gasoline
According to figures from the United States Energy
Information Agency’s (EIA) Administration Office, PDVSA imports Methyl
tert-butyl ether (Mtbe) and other chemical products in order to increase
gasoline octane rating and process gasoline due to the precarious situation of local
refineries. (Veneconomy, 11-19-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=32866&idc=4)
OPEC reports 1.8% drop in
Venezuela's oil output
Data supplied by the Organization of Petroleum Exporting Countries
(OPEC) shows Venezuela's oil drilling in October slipped 1.8%. According to
secondary sources, cartel figures show that Venezuela produced 2.33 million
barrels of oil per day (bpd) in October 2012, compared to 2.38 million bpd
drilled in October 2011. In October this year, however, the Venezuelan monthly
output grew 18,300 bpd, or 0.7%, compared to September 2012. (El Universal, 11-19-2012; http://www.eluniversal.com/economia/121119/opec-reports-18-drop-in-venezuelas-oil-output)
International Trade
Venezuela-Colombia trade agreement
now in force
Customs headquarters at San Antonio del Táchira, on the
Venezuela-Colombia border, told the Bi-national Economic Integration Chamber
(CAVECOL) that the partial agreement between both nations - signed one year ago
by Presidents Chavez and Santos - entered into force yesterday as trade
authorities have adapted customs technology to the new requirements and have
notified ALADI (Latin American Integration Association) of the terms agreed to.
More in Spanish: (El Universal, 11-20-2012; http://www.eluniversal.com/economia/121120/en-vigor-el-acuerdo-comercial-entre-venezuela-y-colombia)
Logistics
& Transport
Politics
Opponent of Hugo Chavez pushing for
release of imprisoned government adversaries
Venezuela’s opposition leaders are calling on President
Hugo Chavez to grant amnesty to the country’s self-proclaimed political
prisoners. Opposition congressman Edgar Zambrano said he was optimistic after
presenting a proposed bill amnesty bill to the National Assembly on Thursday. “We perceive willingness within the
government” to liberate some government opponents and allow others to
return to Venezuela after years of exile, Zambrano said. (The Washington Post,
11-16-2012; http://www.washingtonpost.com/world/the_americas/opponent-of-venezuelas-hugo-chavez-pushing-for-release-of-imprisoned-government-adversaries/2012/11/16/2163df74-303b-11e2-af17-67abba0676e2_story.html)
Inter American Human Rights court
about to decide another case against Venezuela
The Inter American Human Rights Court is getting ready to issue a third
sentence against Venezuela within this year, based on Government failure to
identify and punish the killers of human rights activist Joe Castillo, which
took place in Zulia state in 2003. More in Spanish: (El Universal, 11-20-2012; http://www.eluniversal.com/nacional-y-politica/121120/corte-idh-se-apresta-para-decidir-otro-caso-contra-venezuela)
No comments:
Post a Comment