Economics &
Finance
There are no guarantees that the
government's debt with the private sector will be honored. Signs from authorities over the
repayment of pending FOREX debt for imports by the private sector are far from
encouraging. Although several groups have presented accounts of pending debts
to suppliers, as well as met the requisites demanded for renewing imports, the
authorities still have not guaranteed they will respond. Last week, the
Ministry for Industries suggested that chemical, plastics and automotive
industries could be repaid with petroleum, bauxite, aluminum and bonds. They
provided few details, but some companies have rejected the idea. More in
Spanish. (El Universal, http://www.eluniversal.com/economia/140218/sector-privado-sin-garantia-sobre-el-pago-de-la-deuda)
DATANALISIS believes scarcities will
worsen dramatically over the next few weeks. DATANALISIS research firm president Luis Vicente Leon
says "the violent situation the
nation is going through will have a high economic cost that will worsen an
outlook that was already negative", "Convulsion is here to stay: Economic crisis, students, armed gangs,
repression and arrogance: A Molotov cocktail". "We are in a critical scarcity situation that is merely the tip of
an iceberg...the situation today is infinitely better than that which we will
have in two or three weeks". Leon says the only solution is through
dialogue and negotiation. "You don't
dialogue, you don't solve". More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/luis-vicente-leon-estima-que-escasez-empeorara-en-.aspx#ixzz2tfbPdhFh)
SICAD rate now stands at VEB 11.70
per dollar after cutting back its announced amount for last week . The Central Bank of Venezuela (BCV)
reports that the exchange rate set by the Complementary Currency Management
System (SICAD) is now at VEB 11.70 per dollar. Last week, SICAD allocated U$D
222 million to 785 companies. Initially an offer of U$D 440 million had been
announced, but the amount was cut back in this first auction held under the
aegis of the National Foreign Trade Centre (CENCOEX), in coordination with the
Central Bank of Venezuela and the Economy Vice President. SICAD is calling a
new auction this week for another U$D 220 million, this time directed
exclusively at textiles, footwear, appliances, electronics and computers. Economy
Vice President Rafael Ramírez again says he could raise the weekly amount to
U$D 440 million next week. More in Spanish: (AVN; http://www.avn.info.ve/contenido/tasa-sicad-se-ubica-bs-1170-d%C3%B3lar; Ultimas
Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/cencoex-adjudico-solo-222-millones-tras-depuracion.aspx; AVNoticias;
http://www.avn.info.ve/contenido/centro-nacional-comercio-exterior-convoca-subasta-sicad-220-millones-0;
El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/cencoex-retoma-oferta-de--220-millones-en-el-sicad.aspx;
El Universal, http://www.eluniversal.com/economia/140218/convocan-a-sector-textil-electronica-y-computacion-a-subasta-sicad;
El Mundo, http://www.elmundo.com.ve/noticias/economia/banca/sicad-podria-elevar-monto-de-la-subasta-semanal.aspx#ixzz2tfcN1XJC)
Oil
& Energy
US lawmakers call for embargoing
Venezuela oil imports. U.S.
Rep. Ileana Ros-Lehtinen (R-FL), Chairman of the U.S. House of Representatives
Middle East and North Africa Subcommittee, asked Secretary of State John Kerry
to reduce oil imports from Venezuela and to direct the Permanent U.S.
Representative at the Organization of American State (OAS) to call for a
special session to discuss the ongoing Venezuelan crisis. “With the ongoing conflict in Venezuela and countless human rights
violations occurring, I have asked the Obama administration to reduce its oil
imports from Venezuela to send a signal of support to those being oppressed by
the Maduro regime," said Ros-Lehtinen. "I also urge responsible nations throughout the Western Hemisphere to
hear the calls for democracy coming from the streets of Venezuela and abide by
the principles instilled in the Inter-American Democratic Charter by convening
a special session at the OAS to discuss the escalating conflict." “I am deeply concerned about the crackdown
against demonstrators in Venezuela and am particularly shocked by the arrest of
opposition leader Leopoldo Lopez," said Representative Eliot L. Engel,
the ranking Democrat on the House Foreign Affairs Committee. "I join the Inter-American Commission on
Human rights in calling upon the Venezuelan government to protect the human and
civil rights of its people. I also call upon all OAS member states to demand
that Caracas end its assault on democracy and comply strictly with the Inter
American Charter on Human Rights,” concluded Engel. (Latin American Herald
Tribune: http://www.laht.com/article.asp?ArticleId=1624794&CategoryId=10717)
Murky accounts at PDVSA. Recent statements by Rafael Ramirez
are confirming earlier reports about murky accounts at PDVSA. Ramírez said:
"We believe our country should know
how much FOREX we have allocated and who we have given it to...we need to see
how much FOREX we have and how we are going to use them. What was going on was
that we would see how much we had but their use was unplanned, I don't mean it
wasn't adequate planning, there was simply no planning". Over 96% of
all FOREX received by Venezuela go to PDVSA and problem is not simply a lack of
planning, at CADIVI - where some U$D 30 billion were lost to fly-by-night
operators, plus the markups, bribes, all of which leads to PDVSA where there is
no control or auditing of funds sent to FONDEN and social projects. Grotesque
numbers carry over from one year to another: U$D 54.433 billion were handed
over by PDVSA to FONDEN or social programs that no one knows much about. In
addition, only 58% of our exports are collected or arrive in country due to
PDVSA agreements and the fact that their debt stood at U$D 43.384 billion at
year end 2013. More in Spanish: (El Universal, http://www.eluniversal.com/opinion/140217/cuentas-turbulentas-de-pdvsa)
PDVSA expects U$D 9 billion in
"new" outside investment this year. Economy Vice President Rafael Ramírez says PDVSA expects
to receive U$D 9 billion in direct investments to raise productivity. He said
this is a real possibility as the economy will grow in 2014, and added that
agreements have been reached with five of PDVSA's key private partners for a
total U$D 9.975 billion. Ramírez made such remarks upon signing an agreement
with Spain's REPSOL for U$D 1.2 billion to increase production at the
PETROQUIRIQUIRE joint venture. He added that India's RELIANCE Industries has
announced it will buy an 11% share which is being abandoned by Malaysia's
PETRONAS in the PETROCARABOBO project. Additionally, he says Argentina's
PLUSPETROL has shown interest in acquiring a 40% interest that US firm HARVEST
is leaving in the PETRODELTA project. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/petroleo/pdvsa/inversiones-por---9-000-millones-estima-levantar-p.aspx#ixzz2tfcvZBBr;
Prensa Latina, http://www.prensa-latina.cu/index.php?option=com_content&task=view&idioma=1&id=2389601&Itemid=1)
International
Trade
Private imports have dropped 70% in one year. According to Cipriana Vargas, a
member of the Customs Committee of FEDECÁMARAS Vargas, private imports have
dropped 70% in one year. She says if CENCOEX does not allocated FOREX for debts
due to supplies, and if SICAD does not provide the amounts it offers, there can
be no private imports, and adds: "We do not know who is receiving
'preferential' dollars". Eduardo Quintana, VP of FEDECÁMARAS VARGAS says
that due to the drop in exports ships designed to carry 2500 containers are
currently carrying 240-550 containers and even less, and that as a consequence
shipping lines are sharing space and costs in order to maintain freightage. More
in Spanish: El Nacional; http://www.el-nacional.com/)
Port movement at Puerto Cabello:
- Over 2000 tons of mil have arrived at port
from Cartagena for the National Corporation for Supplies and Agricultural
Services (CASA) and NESTLÉ Venezuela. Suppliers are, among others
FONTERRA, CENTROLAC and NESTLÉ Argentina.
- 574 tons of soy oil were sent by ALBALINISA
to CASA, also incoming from Cartagena.
- NESTLÉ Argentina sent its Venezuelan
affiliate 21 containers bearing over 546 tons of condensed milk.
- The Coffee Trading Corporation and EXCOCAGUA
sent CAFÉ DE VENEZUELA 32 vans bearing over 900 tons sent by MINERVA and
LORSANAL to ALIMENTACION BALANCEADA.
- 15,000 tons of soy of Canadian red wheat
arrived, exported by TERRA World Trade to Molinos Carabobo.
- A vessel with over 20,000 tons of soy has
been at bay for one week.
Logistics
& Transport
Port Authority (BOLIPUERTOS) is now
charging for services at SICAD parity. BOLIPUERTOS has adjusted the cost of all services they
provide after dollar parity was adjusted in last week's SICAD auction, from
11.36 to 11.7 VEB/U$D. This means costs have risen 85.71% in just one week for surface
rights, stocking and storage, among others. More in Spanish. (El Universal, http://www.eluniversal.com/economia/140218/bolipuertos-facturo-sus-servicios-a-la-nueva-tasa-del-sicad)
Politics
World pressure builds for dialogue in Venezuela, Maduro
lashes back, attacks Colombia's Santos
MERCOSUR's Parliament, on a motion supported by Brazil,
Argentina, Paraguay and Uruguay, expressed regret over violence in Venezuela
and called for dialogue. It said it may send a group from their Democracy Observatory
to assist in the process. Colombia, China and Mexico also called for dialogue.
UNASUR - the union of South American nations - made a similar statement, which
Venezuela's Foreign Minister Elías Jaua altered when reading it publicly, putting
in different lines. Colombia´s President Juan Manuel Santos also complained
about mistreatment of Colombian nationals in Venezuela. Maduro lashed back saying
Santos "again made the mistake of
siding with the fascists...he is not going to give me lessons in democracy".
In reference to worldwide calls for dialogue, Maduro said: "If the World wants to see a dialogue, here we are. A dialogue is
much more than a limited dialogue among elite leaders". More in
Spanish: (El Nacional; http://www.el-nacional.com/;
El Universal, http://www.eluniversal.com/nacional-y-politica/140218/parlasur-aprueba-enviar-mision-de-observacion; CARACOL, http://www.caracol.com.co/noticias/internacionales/maduro-critica-a-juan-manuel-santos-por-opinar-sobre-venezuela/20140218/nota/2087261.aspx;
NTN24 @NTN24 http://goo.gl/fv4L9z)
Maduro expels three US consular
officials, State Dept. retorts he tries "to distract from his own actions"
President Nicolas Maduro is expelling three US consular
officials, accusing them of meeting students involved in anti-government
protests. "It's a group of US
functionaries who are in the universities. We've been watching them having
meetings in the private universities for two months. They work in visas,"
the president said. "Venezuela
doesn't take orders from anyone!" he added. Triggering the expulsion
was the Obama administration's siding with opposition leader Leopoldo Lopez,
who is being hunted by police as Maduro accuses him of leading a "fascist" plot to oust the socialist
government. Anzoátegui Governor and government party leader Aristóbulo Istúriz
went as far as to suggest the US might attempt to murder opposition leader
Leopoldo López. US State Department spokeswoman Jen Psaki quickly termed the
charges "unfounded and false",
and retorted that Venezuela was trying "to distract from its own actions by blaming the United States,"
adding, "These efforts reflect a
lack of seriousness on the part of the Venezuelan government to deal with the
grave situation it faces" (Yahoo: http://news.yahoo.com/maduro-expels-3-us-officials-amid-protest-tensions-040339045.html;
BBC;
Latino Fox News: http://latino.foxnews.com/latino/politics/2014/02/18/venezuelan-opposition-leader-leopoldo-lopez-re-emerges-from-hiding-surrenders/;
and more in Spanish: El
Universal, http://www.eluniversal.com/nacional-y-politica/140218/washington-califica-de-falsa-acusacion-del-presidente; and http://www.eluniversal.com/nacional-y-politica/140218/isturiz-cree-que-eeuu-podria-asesinar-a-lopez)
Opposition leader Leopoldo Lopez
re-emerges from hiding, surrenders to authorities at demonstration
Opposition leader Leopoldo Lopez re-emerged from days of
hiding to make an impassioned speech to thousands of supporters and then
surrendered to police, a move that he said will open Venezuelans' eyes to the
increasingly authoritarian bent of their government. Opposition politicians urged calm as Lopez
was taken away and frustration rose as a heavily armed police picket blocked
supporters from marching downtown as they had originally planned. In a speech
today, President Nicolás Maduro said National Assembly President Diosdado
Cabello had personally taken Lopez to a place of confinement, to "protect" him from murder attempts
by the US and Miami exiles. Other government spokesman Calixto Ortega said
Lopez was merely taken in as a witness to provide evidence at the Palace of
Justice. (Latino Fox News: http://latino.foxnews.com/latino/politics/2014/02/18/venezuelan-opposition-leader-leopoldo-lopez-re-emerges-from-hiding-surrenders/;
and more in Spanish: Reporte
Confidencial; Globovision: http://globovision.com/articulo/leopoldo-lopez-pido-calma-y-organizacion-no-permitamos-infiltrados)
Security forces raid an opposition
party HQ. Security forces raided the
headquarters of a Venezuelan opposition party accused of fomenting recent
violence, after last week issuing an arrest warrant for the party's leader
Leopoldo López on charges of murder and terrorism. López is a hardline member
of the country's opposition and has backed recent student protests. The offices
of his Popular Will party were stormed by what appear to be security forces in
a video. "Four guys, dressed
entirely in black, violently broke down the doors. They weren't police; they
weren't National Guard," said volunteer Lisett Esteves, 24. "They asked for leaders of the party.
Intelligence agents then came in with a warrant to take away all of our
equipment." (USA
Today)
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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