Economics &
Finance
FEDECÁMARAS: Government seeks to
impose a failed economic model
FEDECÁMARAS President Jorge Roig, head of the nation's
largest business organization told President Nicolás Maduro that the Government
is "trying to impose an economic
model that has failed around the globe", in reference to the
totalitarian socialist political-economic structure. Maduro heard from both
critics and supporters at a “peace conference” in Caracas, wihich the main
political opposition group skipped. “Our
country is not well, Mr. President,” said Roig. “We have economic indicators that show us with one of the highest
inflation rates in the world, with enormous shortages.” Also attending was
billionaire beverage magnate Lorenzo Mendoza, whom Maduro praised for
suggesting the government create a commission to analyze the country’s economic
situation. The commission will be headed by Vice President Jorge Arreaza, who
says all productive sectors are invited to create working groups. (El Universal,
02-27-2014; http://www.eluniversal.com/economia/140227/fedecamaras-govt-seeks-to-impose-a-failed-economic-model;
Bloomberg, http://www.bloomberg.com/news/2014-02-27/venezuela-peace-conference-begins-with-opposition-boycott.html;
and AVN, 02-27-2014; http://www.avn.info.ve/contenido/productive-sectors-called-set-commission-truth-economy)
U$D 13 billion debt to private
sector swells government FOREX reserves to U$D 17.8 billion
The ECOANALÍTICA think tank estimates FOREX available to
the government has risen to U$D 17.8 billion, up 60% from U$D 11 billion at the
same time last year, due to steady oil sales and holding back FOREX from the
private sector, pending a redefinition of the system to be applied. Backed up
debt to the private sector for unpaid past imports is now estimated around U$D
13 billion. More in Spanish: (El Universal, http://www.eluniversal.com/economia/140226/el-estado-acumula-mas-fondos-externos-pero-crecen-sus-deudas)
Venezuela: A country with four
exchange rates
- Venezuela's economy, under strict exchange
controls since 2003, now faces four different foreign exchange rates:.
Official rate: VEB 6.30/U$d, used for 82% of the FOREX the government received - mainly from oil sales - that is almost U$D 43 billion, strictly for priority areas such as food, health and education. - SICAD rate: VEB
11,80/U$D. The Ancillary
FOREX Administration System (SICAD) auctions out U$D 220 million weekly
for non priority activities and tourism.
- SICAD 2 rate: A new system just announced which makes
it possible for individuals and companies to freely trade dollars daily
within a government established range, designed to bring down scarcity and
inflation.
- Black market: Estimated at 13 times the official rate. It arose from
strict government controlls and distrust of the Bolivar. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/analisis---venezuela--el-pais-de-los-cuatro-tipos-.aspx#ixzz2uQPZ2I00)
Companies must be one year old in
order to participate in SICAD
The National Foreign Trade Center (CENCOEX) keeps piling up conditions
for companies that want to use the SICAD system. The call for this week's
auction now specifies that for companies to enter the process they must be at
least one year old. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/empresas-deben-tener-al-menos-un-ano-de-creadas-pa.aspx#ixzz2uQOsQ2IA)
International
Trade
Government established a Foreign
Trade Corporation (CORPOVEX)
The Venezuelan Government has formally established a
Foreign Trade Corporation (CORPOVEX), which will report to the Vice President
for Economic Affairs and the Central Planning Commission. CORPOVEX will control
foreign trade operations for a group of state-owned companies: AGROPATRIA,
BARIVEN, CASA, CVG, SUVINCA, and VEXIMCA. (El Universal, 02-27-2014; http://www.eluniversal.com/economia/140227/venezuela-establishes-foreign-trade-corporation)
Brazilian exporters anticipate a drop
in Venezuela trade
Brazil's Foreign Trade Association (AEB) expects "a U$D 1 billion reduction in exports to
Venezuela this year". Brazil has a positive balance of payments
relationship with Venezuela due to food exports. Bilateral trade was U$D 6
billion in 2013, with U$D 3.669 billion in Brazil's favor. More in Spanish: (El
Universal, http://www.eluniversal.com/economia/140226/en-brasil-temen-una-merma-del-comercio-con-venezuela)
Over 3,000 tons in scarce food
staples have arrived at Puerto Cabello
- Over 2,324 tons of frozen beef in 44
containers, for the state Supply and Agricultural Services Corporation
(CASA), from Nicaragua
- Over 1,121 tons of milk and cream milk in 48
vans, for CASA, from Costa Rica.
- 230 tons of milk in 10 containers for CASA,
from Nestlé Argentina.
- Over 16 tons of baby milk formula, for CASA,
from Nestlé Germany.
- Over 439 tons of raw soya oil in 20
containers, for CAA, from ALBALINISA Nicaragua.
- Over 267 tons of green coffee, for Café de
Venezuela, from ALBALINISA Nicaragua.
Logistics
& Transport
Heavy cargo land transport is about
70% paralyzed
Members of ASOTRACONTAINER, the Puerto Cabello
Association of Cargo Transporters, is warning that heavy load transportation is
on the verge of a complete stoppage due to scarcities and the excessive
increase of supplies and spare parts, as well as the lack of road safety. They
report that 70% of the fleet is and an increase in freightage will be announced
next week. More in Spanish: (El Carabobeño; http://www.el-carabobeno.com/impreso/articulo/94907/-sector-de-carga-pesada-advirti-paro-involuntario-de-actividades;
Notitarde; http://www.notitarde.com/La-Costa/Transportistas-de-Asotracontainer-amenazan-con-paro-por-falta-de-autopartes-y-aumento-en-los-repuestos-2113631/2014/02/25/310773)
Business protests impact of higher port
rates
The Puerto Cabello Chamber of Commerce is concerned over rising rates of
port services applied the National Port Authority (BOLIPUERTOS), following an
80% increase in rates at the port there. It is asking authorities to "reconsider" rates to lessen the
economic impact. More in Spanish: (El Universal, 02-27-2014; http://www.eluniversal.com/economia/140227/alertan-impacto-por-alza-de-las-tarifas-de-bolipuertos)
Politics
Student protests in Caracas end in
clashes again
Security forces in Venezuela used tear gas to break up a
student demonstration in Caracas. Thousands of protesters were demanding the
release of fellow students detained during two weeks of unrest, and called a
fresh march for Sunday. Attorney General Luisa Ortega said 13 people had died
in the violence, although President Maduro put the figure of protest-related
deaths at more than 50 on Wednesday. Despite the start of the long holidays
students again gathered in Caracas. "There's
no Carnival for anybody here. Here we are still on the streets, committed to
the fight," student leader Juan Requesens told EFE news agency. Their
peaceful demonstration ended in clashes with security forces when some masked
protesters tried to block a road. On Wednesday, Maduro held a "national peace conference" without
the participation of the opposition. (BBC, http://www.bbc.com/news/world-latin-america-26376987)
Protests, barricades bring San
Cristóbal to a halt
Piles of glass, a trashed refrigerator and the burned
remains of a car litter the streets of the Pirineos neighborhood in San
Cristobal, giving it the look of a community under siege. Residents of this
middle-class area have created the disorder themselves as part of
anti-government protests demanding President Nicolas Maduro resign. Open sewer
grates expose gaping holes in the street. Debris piled across intersections
blocks traffic. Residents set the rules as to which cars can pass through and
when. "This barricade is a community
effort. The neighbors held an assembly and we're all in agreement,"
said one burly man who asked not to be identified, as hooded teenager’s
unloaded sacks of rocks from the back of a pick-up. "We call this resistance. We're not going to ease up no matter what the
governor or the president says." Businesses are mostly shut and public
transport suspended. The sporadic demonstrations that kicked off two months ago
in San Cristobal have turned into a national opposition protest movement and
shuttered this city of 250,000. (Reuters, 02-27-2014; http://www.reuters.com/article/2014/02/27/us-venezuela-protests-sancristobal-idUSBREA1Q1WA20140227)
CNN en Español,
media under siege as unrest continues
The media remains under siege in Venezuela as
anti-government street protests continue to escalate. CNN en Español anchor
Patricia Janiot, abruptly left the country after receiving threats from the
government. President Nicolas Maduro threatened on Thursday to expel CNN from
Venezuela unless it “rectified its
coverage” of the recent demonstrations and has ordered his administration
to begin the process of blocking CNN’s signal in the country. In response, CNN
en Español has countered that it has reported in an “accurate and balanced manner.” Colombian regional news network
NTN24 was pulled off the air and its Internet feed blocked in Venezuela for its
uncensored reports. Last Tuesday, a CNN crew was robbed at gunpoint while
covering the street protests. As CNN’s Karl Penhaul described it, a group of
armed thugs on motorcycles surrounded him and his crew after they rammed into a
group of anti-government protesters. “Next
thing I knew, I was staring down the barrel of a chrome-plated 9mm pistol and
three armed men then proceeded to rob our crew of all the camera gear and all
the transmission gear as well,” he reported. With local television
networks, radio stations and even newspapers effectively stifled by the Maduro
government, most Venezuelans have been relying on YouTube, Twitter, Facebook
and other social media to get uncensored information. Newspapers not toeing the
line have seen their paper supply restricted, forcing some to close down or in
the case of broadsheet El Nacional, cut down the number of sections in the
paper. Meanwhile, even the Internet is under siege. Twitter reported that
Venezuela had blocked live images on it service on Friday while U.S. company
Zello said that state-run CANTV had blocked access to its popular “walkie-talkie” app, widely used by
protesters worldwide to organize their marches. (Variety, http://variety.com/2014/tv/news/cnn-en-espanol-media-under-siege-as-unrest-in-venezuela-continues-1201115632/)
Maduro bets 6-day holiday will diffuse protests
President Nicolás Maduro expanded annual Carnival
festivities by decreeing February 27-28 as national holidays, in addition to
the scheduled days off on March 3-4. Next March 5 will also be a holiday
marking the first anniversary of the death of Hugo Chavez. While the extended
vacation weekend may send some to the country’s beaches, Maduro will still need
to offer concessions to extend any lull in the violence beyond the holidays,
said Carlos Romero, a political analyst at the Central University of Venezuela
in Caracas. (Bloomberg: http://www.bloomberg.com/news/2014-02-26/maduro-bets-6-day-holiday-will-diffuse-venezuela-protests.html;
Reuters, http://www.reuters.com/article/2014/02/27/us-venezuela-protests-idUSBREA1Q1TQ20140227)
Kerry: The United States will not
"sit around and be blamed for things
we've never done".
US Secretary of State John Kerry says the United States
looks forward to restoring relations with Venezuela, yet "we're not going to sit around and be blamed
for things we've never done." The statement came in response to
accusations made by Nicolás Maduro's Government, which blamed the US
Administration for its alleged role in Venezuelan demonstrations. Kerry's words
followed Venezuela's surprise move to name Maximilian Sánchez Arveláiz a
possible new ambassador to the US. (El Universal, 02-26-2014; http://www.eluniversal.com/nacional-y-politica/140226/kerry-the-united-states-looks-forward-to-improving-ties-with-venezuela; Reuters, http://www.reuters.com/article/2014/02/27/us-usa-venezuela-kerry-idUSBREA1P1U520140227)
US Senate resolution targets
Venezuelan rights violators
Senate Foreign Relations Committee Chairman Robert
Menendez (D-NJ) and U.S. Senator Marco Rubio (R-FL) today introduced a Senate
Resolution deploring the violent repression of peaceful demonstrations in
Venezuela, calling for full accountability for human rights violations. “This action sends an unequivocal message by
condemning the violence perpetrated against innocent Venezuelans by President
Maduro, Venezuelan security forces, and armed pro-government supporters,"
said Chairman Robert Menendez. "Now
is the time to pursue a course of targeted sanctions by denying and revoking
visas, and freezing the assets of Venezuelan officials complicit in the deaths
of peaceful protestors... This Resolution urges President Obama to immediately
impose targeted sanctions that are already possible under existing law and
encourage a process of dialogue between Venezuela’s government and the
political opposition,” Rubio added. (Capitol Hill, http://www.capitolhillcubans.com/2014/02/senate-resolution-targets-venezuelan.html)
US expels Venezuelan diplomats in
tit-for-tat move over unrest
The United States on Tuesday ordered three Venezuelan
diplomats to leave in reprisal for President Nicolas Maduro's expulsion of
three American embassy staff accused of fomenting unrest that has killed at
least 13 people. The U.S. State Department said two first secretaries and a
second secretary at the Venezuelan embassy in Washington had been declared
personae non grata in response to Caracas' February 17 move against the three
Americans. "They have been allowed
48 hours to leave the United States," it said. (The
New York Times)
Washington responds coolly to
Maduro's ambassadorial proposal
The State Department responded coolly to President
Nicolás Maduro's surprise announcement that he would name Maximilian Sánchez
Arveláiz as Venezuela's Ambassador to Washington. Venezuela expelled the last
US Ambassador here in July 2010. Maduro announced his decision on television
with no prior consultation. State Department spokesperson Jen Psaki responded
that the US is open to improving relations with Venezuela, even appointing
ambassadors, but indicated that Venezuela must first "show seriousness" in its intentions. "The exchange of ambassadors is a mutual
decision. We have said for months that we are open to an exchange, but
Venezuela must show seriousness on its aperture so that a positive relationship
can move forward." More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/140226/washington-reclama-seriedad-para-intercambio-diplomatico)
US government condemns attacks on
human rights in Venezuela
The US State Department Country Report on Human Rights
Practices for 2013, presented by Secretary of State John Kerry has condemned
the absence of a balance of powers in Venezuela, saying "we will continue to support those without a
voice in Venezuela, where the government had met peaceful demonstrators with a
show of force in the streets and by jailing students...the resolution of Venezuela's problems will not come through violence,
but through dialogue". "The
principal human rights abuses" recorded in Venezuela included "corruption, politicization of the judicial
system, and government actions to impede freedom of expression and restrict
freedom of the press". It notes "practical limitations on freedom of speech and press" as a
result "of the combination of laws
and regulations governing libel and media content, as well as legal harassment
and physical intimidation of individuals and the media." (El
Universal, 02-27-2014; http://www.eluniversal.com/nacional-y-politica/140227/us-government-laments-politicization-of-venezuelan-judiciary;
and more in Spanish: ABC Spain, http://www.abc.es/internacional/20140228/abci-eeuu-derechos-cubavenezuela-201402271858.html)
European Parliament holds regime responsible
for violence in Venezuela
The European Parliament - by an ample majority vote - called
on the regime of Nicolás Maduro to "immediately"
disarm and dissolve "armed groups
that are controlled by the government". The declaration calls for an
end of impunity by these groups. It says that instead of promoting peace authorities
"have threatened an armed revolution".
It also reminded Maduro of his "duty
to guarantee the safety of all citizens in the country, without regard to their
political views or affiliations". The resolution calls for a
parliamentary group to visit Venezuela urgently "to gage the country's situation as soon as possible". European Union Commissioner Algirdas Semeta
told the European Parliament: “We are
deeply concerned by the continuing unrest... We reject all acts of violence and
intolerance from all side..."nobody
should be detained for exercising their rights to freedom of speech and
assembly". (El Universal, 02-27-2014; http://www.eluniversal.com/nacional-y-politica/140227/european-commission-alarmed-about-detention-of-students-in-venezuela;
and more in Spanish: La Razón, http://www.larazon.es/detalle_normal/noticias/5696880/internacional/la-eurocamara-senala-a-maduro-como-responsable-de-la-violencia#Ttt1Xtv2y4ippJdk)
Pope pleads for 'end to violence' in Venezuela
Pope Francis says he is concerned about recent unrest in
Venezuela, in which at least 13 people have died. The Pope said he hoped that
"violence and hostility will cease
as soon as possible". He called on the Venezuelan people "to promote reconciliation through mutual
forgiveness and sincere dialogue". (BBC)
Colombia demands respect for former
President Uribe from Venezuelan authorities
Colombian Foreign Affairs Minister María Ángela Holguín
complained about consistent oral attacks by the Venezuelan regime on former
Colombian President Álvaro Uribe, accusing him of being the mastermind of the
ongoing crisis in Venezuela. "When
one hears such unfortunate remarks as those made... by Foreign Minister (Elías)
Jaua, it is time to ask Venezuela to abstain from speaking thus about former
President Álvaro Uribe," Holguín said. (El Universal, 02-26-2014; http://www.eluniversal.com/nacional-y-politica/140226/colombia-wants-venezuelan-authorities-not-to-finger-uribe)
The OAS has postponed its debate on
Venezuela
The Organization of American States temporarily postponed
its call for a special session on Venezuela which had been requested by Panama
"for administrative reasons".
Venezuelan Foreign Minister Elías Jaua, who is on a regional support seeking
tour of South America, objects to the OAS taking a position and would rather
take the case to UNASUR, the Union of South American Nations. (Infolatam)
Russia seeks increased military
presence in Venezuela and Cuba
Russian Defense Minister Sergei Shoigu has said the Kremlin intends to
expand its military presence to other nations and is pursuing high level contacts
in Venezuela, among other nations. More in Spanish: (ABC Spain, http://www.abc.es/internacional/20140228/abci-rusia-militares-cubavenezuela-201402271706.html)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.
