International
Trade
Imports reported at Puerto Cabello:
- 21,650 tons of sodium sulphate in 3 bundles, from
Spain, for Procter & Gamble, Alimentos Polar and Comercializadora El
Gauche.
- 2,070 tons of chicken, in 56 containers, from
Brazil for Corporación de Abastecimientos y Servicios Agrícolas
(CASA).
- 1,234 of metalic structures, in 465 vans for the
government Consorcio de Estructuras Metálicas Modernas.
- 1,079 tons of beef from Brazil for CASA
- 900 tons of margarine, from Brazil for CASA
- 211 tons of cream milk
from Jamaica, for Nestlé
Twelve (12) vessels remain at bay in Puerto Cabello
pending dock assignation, 7 of them carrying bulk cargo. More in Spanish: (El
Carabobeño; http://www.el-carabobeno.com/impreso/articulo/101665/-pollo,-carne-y-margarina-arribaron-al-puerto-carabobeo)
Wheat cargo expected to arrive
Nicolás Constantino, President of the Wheat Millers
Associations (ASOTRIGO) reports wheat supply for the bread industry will
improve in the next few days. He said the government authorized new imports 2
weeks ago in order to restore inventories. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/actualidad/noticias/comienzan-a-llegar-barcos-con-trigo-para-la-indust.aspx#ixzz32FcQkTcw)
China has become Venezuela´s main supplier of vehicles,
but imports dropping
During 2013, China sold Venezuela U$D 269 million in
automotive products, around 36.5% of the total imports here. This was a 63.17%
drop from 2012 when Venezuela bought a little over U$D 769 million from China. (Veneconomy,
http://www.veneconomy.com/site/index.asp?ids=44&idt=39343&idc=3; El
Universal, http://www.eluniversal.com/economia/140519/china-strengthens-as-venezuelas-main-car-supplier)
Panama, Venezuela to restore consular ties after spat
Panama and Venezuela "have proceeded to the exchange of (diplomatic) notes" to
restore consular relations, suspended since March 5 together with diplomatic
and trade ties in the wake of a political dispute, says the Panamanian Foreign
Ministry. The reopening of consular facilities in both countries "will take place in the next few days."
No further details were given. After relations were broken off, Panama
presented "notes of protest"
before the World Trade Organization for what it considers discriminatory
measures by Venezuela, which include the suspension of millions of dollars in
debt owed by Venezuelan importers to Panamanian exporters in the Colon Free
Trade Zone. (Fox News, http://latino.foxnews.com/latino/politics/2014/05/19/panama-venezuela-to-restore-consular-ties-after-spat/)
Logistics
& Transport
LUFTHANSA, IBERIA and AIR FRANCE halt Caracas ticket
sales
LUFTHANSA suspended ticket sales to Caracas joining
airlines that have taken similar actions over Venezuela’s currency controls. IBERIA
- which holds 24% market share in Venezuela-Europe air transportation - reports
"there are restrictions on the sales
of tickets to and from Venezuela" AIR FRANCE says "there is no availability until further
notice". Panama’s COPA said last week it will cut routes to Venezuela,
saying it’s owned U$D 488 million by the government. Airlines had an equivalent
of U$D 3.9 billion stuck in bolivars as of April, according to the
International Air Transport Association. Those sales in the local currency
can’t be repatriated because of a decade-long system of controls. The group
said currency restrictions have prompted at least 11 carriers to cut capacity,
sales or routes to Venezuela in the past year. Local international ticket sales
have dropped 41% during Q1 2014. Caracas
is now the most expensive destination in Latin America from and
to any European country (over €1,000) because of the distortions. Tickets are
between 20 and 40% more expensive; even more so than flying to Brazil during
the World Cup, a travel agent told AFP. In addition, the IATA informed air
carriers have cut their offers 15% to 75%. (Bloomberg, http://www.bloomberg.com/news/2014-05-17/lufthansa-halts-caracas-ticket-sales-joining-other-carriers-1-.html; Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=39344&idc=3;
and more in Spanish: http://www.eluniversal.com/economia/140520/iberia-y-air-france-presentan-restriccion-en-venta-de-boletos; El Mundo, http://www.elmundo.com.ve/noticias/economia/empresas/cayo-41--venta-de-boletos-internacionales--en-el-p.aspx#ixzz329uMzKM9)
Oil &
Energy
Maduro has announced the creation of PETROPALESTINE
During a meeting in Caracas with Palestinian President
Mahmud Abbas, President Nicolás Maduro announced the creation of
PETROPALESTINE, to "provide
Venezuelan diesel to Palestine". More in Spanish: (AVN, http://www.avn.info.ve/contenido/presidente-maduro-anuncia-creaci%C3%B3n-petropalestina; El Mundo, http://www.elmundo.com.ve/noticias/petroleo/pdvsa/gobierno-crea-petropalestina-para-surtir-de-diesel.aspx)
Economy
& Finance
Total pending government obligations to the private
sector around U$D 41.8 billion
Government debt to the private sector for pending
FOREX reimbursements and frozen dividend repatriation continues to rise.
According to the ECOANALÍTICA think tank:
- Pending import debt to the private sector rose to
U$D 25.8 billion by the close of March, a 9.3% increase.
- Approved - but not paid - dividend repatriations
are up to U$D 4.2 billion.
- Unpaid service debt to airlines, insurance
companies and others are now above U$D 5.7 billion.
- PDVSA's pending obligation to companies in mixed
venture projects, which are up to U$D 6.1 billion.
- This all adds up to U$D 41.8 billion.
Business leaders have told authorities this is their
main problem and is linked directly to paralyze production as foreign suppliers
refuse to provide goods and services to Venezuela. Government response has been
ambiguous. Economic Affairs Vice President Rafael Ramírez set off alarms in
January when he conditioned repayment, then the government appeared to correct its
course and promised to pay off up to 30% of its debt in priority areas. That
repayment has not taken place and is hurting inventories and productivity. The
National Industry Federation (CONINDUSTRIA) reports industry is operating at
48.02% capacity, the lowest level since the 2003 general strike. ECOANALÍTICA
Director Asdrúbal Oliveros points out that while the regime leaves obligations
to the private sector unpaid, it is stockpiling fund deposits abroad, which
were up to U$D 15.8 billion in March, up from U$D 9.3 billion in March 2013.
More in Spanish: (El Universal, http://m.eluniversal.com/economia/140518/gobierno-adeuda-al-sector-privado-258-millardos)
Dropping support for Maduro halts economic adjustment
Foreign bank representatives
meeting with economic authorities report the government is working at an
adjustment plan which involves a unified currency, increased gasoline prices,
adjusting controlled prices and consolidating FOREX funds in order to increase
international reserves...but a 13.4% drop in President Maduro's popularity -
down to 37% - with 8 out of 10 polled considering the nation's situation as
negative - has put a damper on further economic adjustment plans. More in
Spanish: (El Universal, http://www.eluniversal.com/economia/140520/baja-en-el-respaldo-a-maduro-complica-al-plan-de-ajuste)
April inflation jumps to 5.7% percent
Venezuela's consumer prices rose 5.7% in April,
jumping from 4.1% the month before as the nation struggles to control
inflation. The Central Bank this year has routinely delayed the release of
economic indicators as the government of President Nicolas Maduro faces growing
criticism over slowing growth, spiraling prices and chronic product shortages.
Daily newspaper El Nacional reported said 12-month
inflation at 61.5% in April and that the Central Bank's shortage index, a
measure of the availability of staple products, was at least 30%. Inflation for
a given month is supposed to be published within the first ten days of the
following month. (Reuters, http://www.reuters.com/article/2014/05/17/us-venezuela-economy-idUSBREA4G05O20140517)
Finance Committee Chairman admits corruption in
CADIVI, hints at unified currency
Ricardo Sanguino, pro government Chairman of the
National Assembly's Finance Committee, has said "there was indeed corruption in CADIVI" and admitted that the
regime was "very permissive"
in controlling FOREX allocations. He also says the long term tendency is to
unify all exchange rates. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/sanguino-si-hubo-corrupcion-en-cadivi.aspx#ixzz32Fbt44Gl)
Politics
UNASUR struggles to get paralyzed talks started again
In a brief statement after meeting with 3 UNASUR
Foreign Ministers and the Papal Nuncio, Ramón Guillermo Aveledo, Secretary
General of the Democratic Unity Coalition, said mediators will continue meeting
with authorities in order to get the talks going again. Opposition leaders
presented the delegation with a document setting forth "all details" which led them to put
a freeze on the talks until the regime made "gestures" and complied with agreements which they say were
made during meetings. A key sticking point is the liberation of political
prisoners, which the government PSUV party leadership discards as "impunity". President Nicolás Maduro
called on the opposition to rejoin the talks and says his government will not
abandon negotiations, but added that if talks did not continue the nation would
continue on its course. At the same time, Foreign Minister Elías Jaua said that
all those who abandon talks "want
war". A full meeting of UNASUR Foreign Ministers is scheduled to take
place this week in Ecuador's Galapagos islands to evaluate the critical
situation. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/140520/discuten-liberacion-de-jovenes-para-reactivar-el-dialogo;
http://www.eluniversal.com/nacional-y-politica/140519/jaua-afirma-que-quien-se-pare-de-la-mesa-de-dialogo-quiere-guerra;
El Nacional; http://www.el-nacional.com/;
Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/unasur-abrio-puentes-en-el-dialogo-venezolano-otra.aspx;
AVN; http://www.avn.info.ve/contenido/cancilleres-unasur-realizar%C3%A1n-reuni%C3%B3n-ordinaria-pr%C3%B3xima-semana-ecuador;
Infolatam)
Venezuela to protest in UN over alleged US
interference in domestic politics
Venezuela has announced it will file a formal
complaint to the UN and other international institutions over US interference
in the country’s internal affairs that has aggravated the political crisis in
the country. "We will be making
formal complaints at the United Nations, since [the United States] is violating
the UN Charter,” said Venezuela’s Foreign Minister Elias Jaua. He added
that Venezuela will also file complaints to regional institutions - namely the
Organization of American States, the Latin American and Caribbean grouping
CELAC and the South American bloc UNASUR - and added that Caracas has prepared
a "comprehensive file" with
evidence against the US president, Secretary of State and other US officials,
who allegedly interfered in Venezuela’s affairs. (Ria-Novosti, http://en.ria.ru/world/20140519/189934575/Venezuela-to-Protest-in-UN-Over-US-Interference-in-Domestic.html)
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