Oil &
Energy
PDVSA reports 9.67%
debt increase
According to its official yearly report for 31
December 2014, PDVSA must disburse US$ 5.373 billion in 2016 and US$ 7.325
billion in 2017 to service capital and interests on its debt, which is a 9.67%
increase over the previous year. Analysts estimate around US$ 6 billion have
been paid out this year, but the figure is not in the report. More in Spanish:
(El Universal: http://www.eluniversal.com/economia/150427/pdvsa-reporta-aumento-de-967-de-su-deuda-financiera)
Venezuela may have missed US$ 24 billion in oil
revenue in 2014
Venezuela, struggling to pay for essential
items such as food and medicine amid strict foreign currency controls, may have
failed to collect about a third of its potential oil revenue in 2014, a Reuters
analysis suggests. The nation likely realized just over US$ 50 billion in oil
revenue in 2014, according to an analysis of publicly available data and
estimates based upon past performances of Venezuela's oil sector. But as
a result of generous financing mechanisms to allied nations through cooperation
agreements and imports of crude oil and various products, Venezuela potentially
deprived itself of about US$ 24 billion in oil revenue last year, the analysis
suggests. (Reuters, http://www.reuters.com/article/2015/04/27/us-venezuela-oil-revenue-analysis-idUSKBN0NI1BM20150427; El Universal, http://www.eluniversal.com/economia/150427/pdvsas-revenue-production-and-exports-fall)
Venezuela’s export barrel averaged US$ 52.61/bbl.
the week of April
20 through April 24, up US$ 2.27/bbl., according to the Oil and Mining
Ministry. The average-to-date this year is US$ 45.95/bbl. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43659&idc=4;
Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2385039&CategoryId=10717)
Commodities
COLGATE PALMOLIVE reportedly halts its soap production
Workers at the COLGATE PALMOLIVE plant in Carabobo state report the plant has been paralyzed
because supplies ran out. "We were putting out over 2,500 soap boxes in
each shift, we were breaking records", says Félix Bello, the union's
secretary general, who fears over 150 workers will become unemployed. More in
Spanish: (Globovision, http://globovision.com/colgate-palmolive-paraliza-produccion-de-jabon-en-carabobo/)
Economy
& Finance
U.S. Companies are hurting from Venezuela's hyperinflation
Every time Venezuela introduces a new, weaker currency
exchange rate, some of the world's largest companies face the decision of
whether or not to adopt it. If they eventually do switch to the less
favorable rate, it can result in multimillion-dollar charges that
drag down balance sheets and earnings statements. At least 46 S&P 500
companies, about 10% of the total index, have told investors about potential
exposure to Venezuela's currency in the past year, according to a search of
company filings compiled by Bloomberg. (Bloomberg, http://www.bloomberg.com/news/articles/2015-04-24/these-u-s-companies-are-hurting-from-venezuela-s-hyperinflation)
Accrued inflation in the food sector could reach three
digits to 103.6%, says CAVIDEA’s CEO
Juvenal Arveláez. He said it was not official information because the Central
Bank (BCV) has not provided figures “but
this is what is being estimated.” (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43653&idc=2)
Politics and
International Affairs
A total of 865 people have been charged for bilking the nation for a total of US$ 8 million, through
the use of foreign currency authorizations to purchase items and travels with
credit cards abroad, says Prosecutor General Luisa Ortega. She did not mention
those who cheated the nation for over US$ 25 billion, via CADIVI and the CENCOEX.
(Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43654&idc=2; El Universal, http://www.eluniversal.com/economia/150427/856-people-accused-of-forex-fraud-in-venezuela)
Caracas mayor jailed over alleged coup plot released
for surgery
The mayor of Caracas, who was arrested on suspicion of
plotting a coup against the government, has been put under house arrest for
health reasons. The public prosecutor’s office announced that Antonio Ledezma
would be allowed to undergo surgery for a hernia and recuperate. He is reported
in strong condition following the operation. (The Guardian, http://www.theguardian.com/world/2015/apr/25/caracas-mayor-antonio-ledezma-jailed-alleged-coup-plot-house-arrest-surgery;
Reuters, http://www.reuters.com/article/2015/04/25/us-venezuela-opposition-idUSKBN0NG0XG20150425;
http://www.reuters.com/article/2015/04/25/us-venezuela-opposition-idUSKBN0NG00X20150425;
Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43656&idc=1;
El Universal, http://www.eluniversal.com/nacional-y-politica/150427/mayor-antonio-ledezma-hospitalized-after-successful-operation)
Ambassador to return to Venezuela in “next few hours,” says Spanish FM
Spanish Foreign Minister Jose Manuel Garcia-Margallo has
acknowledged the diplomatic gestures by President Nicolas Maduro toward Prime
Minister Mariano Rajoy and said Spanish Ambassador Antonio Perez Hernandez
would return to Caracas “in the next few
hours.” Maduro asked Rajoy to shake hands at the next EU-Latin America
Summit to prevent “the spears” from
being brandished. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2385097&CategoryId=10717;
El Universal, http://www.eluniversal.com/nacional-y-politica/150427/spain-ambassador-perez-to-return-to-caracas-in-the-upcoming-hours)
Opposition prisoner Leopoldo Lopez now in solitary,
wife says
Opposition leader Leopoldo Lopez is being punished by
not being allowed to receive visits for the next three weeks, says his wife
Liliana Tintori. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2385053&CategoryId=10717;
El Universal, http://www.eluniversal.com/nacional-y-politica/150427/lilian-tintori-leopoldo-lopez-was-proposed-to-leave-venezuela)
Prosecutor rules Spanish ex-PM off opposition leader’s
court case
Prosecutor General Luisa Ortega Diaz says former
Spanish Prime Minister Felipe Gonzalez cannot be a part of the defense team for
jailed opposition politicians Leopoldo Lopez and Antonio Ledezma. “It’s not possible for outsiders to come as
technical advisers for a detainee’s defense. It’s not possible because it does
not conform to the legal system,” says Ortega. Her warning contradicts the
opinions of Lopez’s legal team and of Gonzalez himself who said Venezuela’s
legal system permits him to act as advisor. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2385170&CategoryId=10717)
Colombia Immigration confirmed Venezuela has deported 2,039 Colombian citizens so far this year, for
different reasons. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43655&idc=1)
Woman who hit Maduro with mango rewarded with house
A woman who hit President Nicolás Maduro on the head
with a mango has been promised a new house for her troubles in a surreal
tropical tale that has gone viral in Venezuela. The president was driving a bus
through a crowd in the central state of Aragua last weekend when the fruit was
thrown at him. “It says: ‘If you can,
call me,’” said Maduro, as he displayed the fruit on television “Marleny Olivo had a problem with her house.
[Officials] called her. She was scared. She couldn’t believe it was true … I’ve
approved an apartment for you, Marleny, as part of the Grand Venezuelan Housing
Mission.” He also promised that he would eat the mango. In a habit that
delights many poor supporters but irritates critics, Maduro – like Chávez –
often personally gives away homes, appliances or pensions to low-income
Venezuelans. (The Guardian, http://www.theguardian.com/world/2015/apr/25/venezuela-woman-president-mango-house)
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.
