International
Trade
Recent inbound cargo at Puerto
Cabello:
- 186,000 tons of aluminum ingots in 7
containers, from AJEROM INOX América Do Sul to a financial institution
that has guaranteed the shipment.
- 50,000 tons of soy and wheat durum from AGP
Grain LTD to PROTINAL Zulia and PROAGRO; and from Canada to Fabrica de
Pastas La Especial.
- 16,000 tons of potassium ammonia from
Lithuania to state owned CORPORACIÓN PETROQUÍMICA.
- 6. 517 tons of frozen and chopped meat from
JBS, Industrial San Martín and Novaterra for CASA.
- Over 3.000 tons of red panels from Yokima
Trading to PDVSA Industrial.
- Over 2.000 tons of shampoo, conditioner,
razors and mouthwash and 303 tons of sanitary napkins for Procter &
Gamble
- 1. 494 tons of concentrated milk and milk
cream from Centrolac and Cooperativa de Productores de Leche for CASA.
- 921 tons, 554 kgs of roofing from Kingston,
Jamaica, for Italpannelli Ibérica S.A.
- 469 tons of margarine from Bunge Alimentos
and JBS
- 300 tons of electrical appliances in 17 vans,
from China's Haier Electronical Appliances to the Intermediate Industries
Corporation.
- 289 tons of sweetened and condensed milk from
Macoca
- 200 tons of milk and creamed milk in 14 vans
from Nestlé México to its Venezuelan affiliate.
- 100 tons of curry powder in bags for Fazlani
Exports PVT LTD from Multimerca La Popular C.A.
- Over 28 tons of butter and creamed milk from
Chile, in 3 containers.
- 16 tons of Isuzu Diesel Engines for Itochu
Latin America, S.A. from Banco Venezolano de Crédito.
- 13 tons 594 kgs of toilet roll brand Jumbo
14 ships remain at bay, among them one bearing 17,000
tons of wheat and 3 carrying 64,000 tons of soy. More in Spanish: (Notitarde, http://www.notitarde.com/La-Costa/Llegaron-921-toneladas-de-techos-desde-Kingston-2131463/2014/03/27/317519; http://www.notitarde.com/La-Costa/Llegaron-harina-de-soya-y-trigo-al-puerto-local-2131900/2014/03/27/317622;
El Carabobeño, http://www.el-carabobeno.com/impreso/articulo/97437/-materiales-de-construccin-siguen-arribando-al-puerto-carabobeo; http://www.el-carabobeno.com/impreso/articulo/97528/-50-mil-toneladas-de-smola-y-soya-arribaron-al-puerto;
http://www.el-carabobeno.com/impreso/articulo/97357/-estatal-casa-recibi-ms-de-seis-mil-toneladas-de-carnel)
Curacao seen as a possible substitute for Panama
Antonio López, President of the Nueva Esparta Customs Agents
Association, says they are looking to use Curazao and Miami as alternate routes
for trade. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/mercados/proponen-a-curazao-para-sustituir-a-panama.aspx#ixzz2x46Yg8h5)
Logistics
& Transport
IATA calls on Venezuela to pay off
airlines, minister says airlines will be paid
International Air Transport Association (IATA) Director General Tony
Tyler has called on the Venezuelan government to establish a plan to pay off
almost U$D 3.8 billion it owed foreign airlines at "a fair exchange
rate". Some 24 IATA airlines are being hurt by exchange controls here.
Tyler says "let us solve the problem
of currently frozen funds and set up a plan to free up that money. It does not
have to be tomorrow...it must be soon." Air and Aquatic Transport
Minister General Hebert García Plaza says the government will respect the
exchange rate: debts from 2012 will be paid at 4.3 VEB/U$D; debts from 2013 to
be paid at 6.3; and that arising in 2014 will come under SICAD I (10.6). More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/iata-pide-a-venezuela-cancelar-deudas-con-aeroline.aspx#ixzz2x9tkOU1r;
El Universal, http://www.eluniversal.com/economia/140327/esperan-pago-a-linea-aereas-a-tipo-de-cambio-justo; El Nacional; http://www.el-nacional.com/)
Economy
& Finance
SICAD II balances government books
but suppliers, population pay
While the latest exchange rate system pleased bondholders
and was seen as a step in the right direction by economic analysts it came at a
high cost of the Bolivar-earning population by effectively devaluing the
currency 88%. And though economists agreed SICAD II, launched on Monday selling
dollars at around 51 bolivars, was a positive move, many said it did not go far
enough. Nevertheless, Venezuela’s debt rallied after SICAD II’s launch, with
the 9.25% benchmark 2027s rising from 70 last Friday to around 76. “It’s good news for bondholders because it is
now easier to balance the domestic budget,” says Russ Dallen, managing
partner at Caracas Capital Markets. “Almost
all Venezuela’s cash flow is in dollars, but it’s expenditure is in bolivars.”
Although it has to be seen as “a move in
the right direction”, this budget balancing comes at the expense of
companies operating in Venezuela “in good
faith”, said Dallen, as well as “creating
a hornet’s nest” among the people. The official Bolivar rate is 6.3 to the
dollar, while SICAD I – launched earlier this year – offered dollars to a
limited number of people at around 11. On the black market, which has now been
decriminalized, bolivars had been trading more than 10 times the official rate
before SICAD II. Barclays said the mechanism “should increase the government’s revenues and maximize its capacity to
sterilize the excess liquidity in the domestic market, helping to progressively
reduce the pressures on the exchange rate”. SICAD II also gives
international businesses such as airlines the chance to repatriate Bolivar
denominated revenues, although they would take a huge loss. Multinationals in
Venezuela hold the equivalent of U$D 27billion at the official 6.3 exchange
rate, said BofA Merrill Lynch. (Emerging Markets, http://www.emergingmarkets.org/Article/3324470/News/Sicad-II-balances-Venezuela-books-but-suppliers-population-pay.html)
Barclays says the government should
receive an additional VEB 460 billion through SICAD II
Alejandro Grisanti, an analyst at Barclay's says the
government will receive an additional VEB 460 billion - almost 12% of GDP -
through the implementation of SICAD II. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/mercados/barclays--gobierno-recibira-bs--460-000-millones-a.aspx#ixzz2x9vUPhLD)
FOREX supply still seen as
insufficient, SICAD II places restrictions
Henkel Garcia, director of Caracas-based consultancy
ECONOMETRICA, says it appears SICAD II “is
placing some restrictions on the operation of the new platform, which is
fueling demand for the ‘black’ dollar again.” SICAD II sold U$D 5 million
on the first day and U$D 38 million on the second day of trading, according to
ECOANALITICA. Demand for dollars outstripped supply by five times Tuesday. Companies
seeking U$D 5 million, for example, were allocated only U$D 3 million. The
government needs to sell U$D 20 million to U$D 30 million a day on SICAD II to
make it productive, according to Siobhan Morden, the head of Latin American
fixed income at Jefferies Inc. (Bloomberg: http://www.bloomberg.com/news/2014-03-25/venezuela-s-credit-rating-cut-by-fitch-on-inflation-currency.html;
and more in Spanish: El Universal: http://www.eluniversal.com/economia/140326/ofertas-publica-y-privada-del-sicad-ii-han-sido-insuficientes)
Fitch Ratings downgrades Venezuela
after economic instability
Fitch Ratings has downgraded Venezuela's rating, from
"B+" to "B," (speculative rating) with a negative outlook.
The rating was reduced one level to B, five steps below investment grade.
Venezuela is now rated in line with Lebanon, Ecuador and Rwanda. The downgrade
has been attributed to "macroeconomic
instability," delays in implementing policies able to address "rising inflation," and "distortions" in the FOREX market.
Fitch Ratings forecasts economic contraction of 1% for 2014, following a drop
to 1.3% in 2013, down from 5.6% in 2012. Venezuela’s benchmark dollar bonds due
2027 fell 0.36 cent to 76.95 cents on the dollar. (El Universal, http://www.eluniversal.com/economia/140326/fitch-ratings-downgrades-venezuela-after-economic-instability)
IMF says Venezuela needs urgent steps to straighten out
its economy
International Monetary Fund (IMF) spokesman William
Murray says Venezuela "urgently"
needs to take steps to abate inflation and adjust economic imbalances, and
added that the Fund stands "ready to
assist the government in improving growth and stability". More in
Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/fmi-venezuela-requiere-medidas-urgentes-para-ender.aspx#ixzz2xFsYUstN;
El Universal, http://www.eluniversal.com/economia/140328/fmi-ofrece-asistir-a-venezuela-ante-dificultad-economica)
4 out of 10 industrial plants are currently paralyzed,
around 500,000 jobs lost
A report from the National Industrial Council
(CONINDUSTRIA) shows that 4 out of 10 industrial plants "have been forced
to shut down" due to government takeovers, unrestrained imports and lack
of raw materials. The document estimates some 500,000 direct and indirect jobs
have been lost. More in Spanish: (El Nacional; http://www.el-nacional.com/)
Inflation will not abate despite
SICAD II
Eduardo Garmendia, President of the National Council of
Industries (CONINDUSTRIA) says it will be "impossible for inflation to abate this year" due to the recent
exchange adjustment under SICAD II. He warned the new rate will impact the cost
of raw materials for many areas that are under price controls. More in Spanish:
(El Mundo, http://www.elmundo.com.ve/noticias/economia/gremios/conindustria--avance-de-la-inflacion-no-disminuira.aspx#ixzz2x46z90aZ)
Food industry seeks full payment of U$D
2.6 billion government debt
The government owes companies in the food industry some U$D 2.6 billion,
says Pablo Baraybar, President of the Food Industry Association (CAVIDEA). He
adds that the average delay in obtaining FOREX allocations is 250 days, and
some companies are over 600 days past due; and explains that it is difficult to
plan imports because it takes them almost a year: 96 days to obtain permits and
240 days to pay suppliers. (El Universal, http://www.eluniversal.com/economia/140327/cavidea-exige-pago-completo-de-la-deuda-en-dolares)
Politics
President Maduro accepts facilitator
for talks
President Nicolas Maduro has agreed to enter talks with
Venezuela's opposition with the help of an outside facilitator, a group of
visiting South American foreign ministers said Thursday. The diplomats didn't
say where the "good faith
witness" would come from, but Maduro has said he was open to
international observers. He even floated a name: Cardinal Pietro Parolin, the
Vatican secretary of state, who was the Holy See's ambassador to Venezuela
until he was summoned to Rome late last year. Diplomats were still working out
the details of the talks. Both sides have said they doubt their counterparts
are genuinely willing to negotiate in good faith. Maduro's socialist
administration also accepted another of the delegation's suggestions: the
creation of a human rights commission that will report directly to the
president and look into allegations of abuse by security forces. Vice-president
Jorge Arreaza explained that the decision was adopted following the advice of
the Union of South American Nations (UNASUR). "The president immediately accepted the proposal as well as others,"
the vice-president remarked. (ABC
News; and El Universal, http://www.eluniversal.com/nacional-y-politica/140327/venezuelan-vp-announces-setup-of-human-rights-office)
Brazil, Colombia and Ecuador to promote talks, opposition
rejects UNASUR as facilitator
The UNASUR designated the Foreign Ministers of Brazil,
Colombia and Ecuador for the task of promoting peace talks between the
government and other political, economic and social sectors in Venezuela. The
choice was approved by the government and the Democratic Unity Conference,
which has insisted on a third party facilitator for the talks. The opposition
leadership said South American Foreign Ministers are not an appropriate party
due to economic links with the Venezuelan government, and that a political
group is not suitable for discussing human rights violations. MUD Executive
Secretary Ramón Guillermo Aveledo insists the facilitator must be a party
chosen through mutual agreement. President Nicolás Maduro, rejected opposition
"preconditions", but
reported that the National Assembly will immediately initiate proceedings to appoint
vacancies on the Supreme Court, the National Comptroller, and 3 out of 5
directors of the National Elections Board. Such appointments are a major point
in contention with the opposition and require a 2/3 vote in the National
Assembly. A source in the Venezuelan Foreign Ministry says some of opposition
demands, such as liberating political prisoners, will be "a part of the talks, not a prior condition
for them". More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/140328/en-manos-de-brasil-colombia-y-ecuador-busqueda-del-dialogo;
and El Nacional; http://www.el-nacional.com/)
US: Venezuela sanctions may be ‘important tool’, Senator
Rubio calls for specific sanctions.
The U.S. State Department has issued its strongest response
yet to the ongoing crisis in Venezuela, saying it would consider imposing
sanctions if the administration of President Nicolas Maduro doesn’t reconcile
with opponents who have been protesting for nearly three months. Assistant
Secretary of State Roberta S. Jacobson said sanctions could become an "important tool" to pressure Maduro.
"If there is no movement, no
possibility of dialogue, if there's no democratic space for the opposition,
obviously we have to think about this, and we are thinking about this,"
told reporters in Washington. Florida Republican Senator Marco Rubio has called
upon the Senate for specific sanctions on Venezuela. Rubio charged that Nicolás
Maduro "and all of his cronies, live
a life of luxury". Rubio charged that "it is now known that the Interior Ministry of Venezuela authorized
snipers to travel to Táchira state and fire on demonstrators"; and pointed
at "pro-government militia groups"
that "drive around the city in
motorcycles, and they assault protesters, they break in and vandalize their
homes, they have weapons that they use to shoot into the crowds and kill or
harm people", saying there are "multiple reports that these groups coordinate with the National Guard."
Rubio also referred to National Assembly President Diosdado Cabello as "a criminal", and said that in the
next few days he will "propose
specific sanctions against individuals and companies associated with the Maduro
regime...like the Assembly President, Diosdado Cabello" and others he
said he would come on the floor in the next few weeks and "identify them by name and the properties they own and the assets
they hold in our own nation." (The Washington Post, http://www.washingtonpost.com/world/the_americas/venezuelan-institutions-unite-against-opposition/2014/03/26/31f9fc98-b545-11e3-bab2-b9602293021d_story.html;
http://www.washingtonpost.com/world/the_americas/venezuela-opposition-mayor-to-serve-year-in-jail/2014/03/26/ffc1c906-b506-11e3-bab2-b9602293021d_story.html;
and more in Spanish: CNN, http://cnnespanol.cnn.com/2014/03/27/ministerio-del-interior-de-venezuela-autorizo-a-francotiradores-para-que-le-dispararan-a-los-manifestantes-dice-marco-rubio/?iref=allsearch;
El Universal, http://www.eluniversal.com/nacional-y-politica/140327/us-senator-to-request-sanctions-against-those-linked-to-maduros-govt)
The UK expresses concern over
violence in Venezuela
UK Vice Foreign Minister Hugo Swire has put out a
statement that the British Government is "deeply concerned" over
violence in Venezuela and asks "all parties to take steps to avoid
confrontation". More in Spanish: (El
Universal, http://www.eluniversal.com/nacional-y-politica/140327/reino-unido-manifiesta-preocupacion-por-violencia-en-venezuela)
France hopes the UNASUR mission can help end violence
The French Foreign Ministry has supported efforts by
UNASUR Foreign Ministers in Venezuela, and hopes it will lead to a "constructive" dialogue between key
parties. "It must put an end to
violence and lower tensions, with respect for human rights and democratic
principles, particularly freedom of expression and peaceful protest". More
in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/140328/francia-espera-que-la-mision-ayude-a-poner-fin-a-la-violencia)
Germany says Venezuela violates
opposition human rights
Martin Schäfer, spokesman for Germany's Foreign Ministry,
termed security forces response to protests "disproportionate", and said the Venezuelan government's
response was a "violation of human
rights". He called for an "urgent"
dialogue that can put an end to the escalation in violence. More in Spanish:
(Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/mundo/alemania-acusa-a-venezuela-de-violar-los-ddhh-de-l.aspx#ixzz2xHHEYjaA)
Costa Rican and Guatemalan
legislatures are concerned about Venezuela
The Guatemalan House of Representatives has condemned
"persecution and repression by the
government and government supported groups against political parties, non
government organizations and citizens who protest peacefully", and
asks they "stop criminalizing
dissent, and recognize political and social critics of the government".
Costa Rica's Congress has approved a resolution of "concern over increased violence and divisiveness" and
expressed solidarity with representative María Corina Machado, Leopoldo López, and
San Cristóbal Mayor Daniel Ceballos. (El Universal, http://www.eluniversal.com/nacional-y-politica/140327/congresos-de-costa-rica-y-guatemala-inquietos-por-el-pais)
Appeals Court refuses to set
Leopoldo López free
A Caracas Appeals Court has rejected an appeal by legal
counsel to free opposition leader Leopoldo López, detained in a military prison
since February 18th. The decision was made public by the Supreme Court. Lopez
is being held on charges of masterminding "intentional arson, public instigation, damages and collusion".
More in Spanish: (El Nacional, http://www.el-nacional.com/politica/Corte-Apelaciones-excarcelacion-Leopoldo-Lopez_0_380961955.html)
Opposition lawmaker returns in challenge
to government
Leading opposition lawmaker María Corina Machado, facing
accusations of treason during a visit abroad, has returned and vows to fight
efforts to remove her from office, setting up a showdown with the government. Lawmakers
from the ruling party are pushing to investigate Machado, who has called for
President Nicolás Maduro’s government to step down. (Latin American Herald
Tribune, http://www.laht.com/article.asp?ArticleId=1850408&CategoryId=10717;
El Universal, http://www.eluniversal.com/nacional-y-politica/140326/machado-upper-echelon-led-by-parliament-speaker-cannot-destroy-me)
Government jails San Cristobal opposition
mayor
The Supreme Court sentenced the opposition party mayor of
the city that spawned nationwide protests to a year in jail. Daniel Ceballos,
mayor of Tachira state capital San Cristobal near the Colombian border, was
stripped of his post after the court yesterday said he encouraged violent
protests and failed to remove barricades set up in the city. (Bloomberg, http://www.bloomberg.com/news/2014-03-26/venezuela-to-jail-opposition-mayor-of-san-cristobal-court-says.html;
Fox News, http://www.foxnews.com/world/2014/03/26/venezuela-opposition-mayor-sentenced-to-year-in-jail-for-refusing-to-crack-down/)
Maduro arrests 'three plotting generals'
President Nicolas Maduro has said that three air force
generals have been arrested for plotting an uprising against his government. He
said that the authorities had been tipped off by "young officers". The three generals, who have not been named,
had links with the opposition, said Maduro in comments made during a meeting
with a delegation of foreign ministers of the UNASUR regional bloc, which was
sent to Venezuela to assess the political crisis. "The generals who have been detained have direct links with opposition
sectors and were saying that this week was going to be decisive,"
claimed Maduro, who has previously accused right-wing sectors backed by the
United States of stirring up trouble as part of a plot to oust him. (BBC)
Government charges crosswords stoke
violence with subliminal message
Crossword puzzles in a local Venezuelan newspaper are
calling readers to violent protests with conspiratorial messages, the country’s
information minister said today. Delcy Rodriguez called for an investigation of
El Aragueño daily from the industrial town of Maracay, 75 miles west of Caracas
for putting “encrypted messages” in
its puzzles, she said in a post on her Twitter account. She didn’t give any
details. (Business Week, http://www.businessweek.com/news/2014-03-27/venezuela-says-crosswords-stoke-violence-with-subliminal-message)
Cabello brother appointed Industry Minister
President Maduro has named Tax Superintendent José David
Cabello as the new Industries Minister. He is the brother of National Assembly
President Diosdado Cabello and replaces General Wilmer Barrientos, who was
appointed only 3 months ago. More in Spanish: (AVN, http://www.avn.info.ve/contenido/designado-jos%C3%A9-david-cabello-como-ministro-para-industrias; Ultimas
Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/jose-david-cabello-pasa-a-dirigir-el-ministerio-de.aspx; El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/jose-david-cabello-pasa-a-dirigir-el-ministerio-de.aspx; El
Universal, http://www.eluniversal.com/economia/140328/barrientos-es-sustituido-en-minindustrias-por-jose-david-cabello)
Guyana claims Essequibo territory is
no longer under dispute
After Guyana and Brazil signed an agreement to study hydroelectric
potential in the Essequibo Territory, Guyanese Foreign Minister Carolyn
Rodrigues-Birkett was asked about possible Venezuelan opposition to the move -
she responded she could not predict the
future but does not foresee any problem because the areas is no longer
considered "under dispute".
(El Universal, http://www.eluniversal.com/nacional-y-politica/140327/para-guyana-el-esequibo-ya-no-esta-en-disputa)
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.
