Oil &
Energy
Venezuela's weekly oil basket price continued to rise for the eighth straight week -- but only a few cents as oil prices began to moderate in some well-supplied markets. According to figures released by the Ministry of Energy and Petroleum, the average price of Venezuelan crude sold by Petroleos de Venezuela S.A. (PDVSA) during the week ending May 15 was US$ 57.00, up just 26 cents from the previous week's US$ 56.74. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2387900&CategoryId=10717)
PDVSA to pay interest on bonds maturing in 2021, 2024,
and 2035
State-run oil company Petróleos de Venezuela (PDVSA)
will pay the corresponding interests of the six-month period ending in May 2015
to all holders of bonds maturing in 2021, 2024, and 2035.The operation will be made pursuant to the terms and conditions of those papers, which were issued in November 2011, May 2012, and May 2014, respectively, PDVSA said in a press release. (El Universal, http://www.eluniversal.com/economia/150518/pdvsa-to-pay-interests-of-bonds-maturing-in-2021-2024-and-2035
Falling oil prices try exporters
The drop of international oil prices will have a
significant fiscal effect on the economies of Latin American countries and the
Caribbean and will put them to the test with regard to their ability to make
adjustments.
In the case of Venezuela, its reluctance to
up-regulate gasoline prices could translate in pressure on the countries which
import Venezuelan oil through PETROCARIBE. This is according to information
posted on the website of the International Monetary Fund (IMF). It is also
noted that in many of these countries, the decreasing value of oil imports
exceeds the projected financing from PETROCARIBE. (El Universal, http://www.eluniversal.com/economia/150518/falling-oil-prices-try-exporters)
Commodities
FORD, government to set out rules for car sales in
dollars
Representatives of FORD Motors de Venezuela and
Venezuelan officials are meeting to plan for automotive assembling in July-August
this year, and later, as well as car sales in dollars, says Gilberto Troya, the
Secretary General of Ford trade union. He adds that customers will be invoiced
in dollars at the FOREX rate traded at the Foreign Exchange Marginal System
(SIMADI) (VEB 197.89 per USD), while production costs will be set according to
the Ancillary Foreign Currency Administration System (SICAD) rate (currently VEB
12 per USD). Previously Industries Minister Ricardo Menéndez had said that the
only legal currency in Venezuela is the bolívar, in response to announcements
that the company would begin selling vehicles in dollars after reaching an
agreement with the national (El Universal, http://www.eluniversal.com/economia/150518/ford-venezuela-govt-to-set-out-rules-for-car-sales-in-dollars;
Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43916&idc=2)
FEDECÁMARAS asks government not to take over
distribution centers
FEDECÁMARAS President Jorge
Roig warns that taking over private product distribution centers "would be the worst mistake" the
government could make. He added that it obstacles to acquiring FOREX
continue the private sector could "collapse",
bringing down domestic production and imports. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/empresas/fedecamaras-insta-al-gobierno-a-no-tomar-centros-d.aspx#ixzz3aTqopbbn; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/fedecamaras-insta-al-gobierno-a-no-tomar-centros-d.aspx)
Economy
& Finance
Key government legislator admits FOREX scarcity
The pro government Chairman of the National Assembly’s
Finance and Economic Development Committee Ricardo Sanguino says “there is not enough availability of foreign
currency to continue satisfying the country’s needs.” He explained
priorities had to be set to boost productive and economic activities.
(Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43917&idc=2)
Russia OK's extending Venezuela credit through 2016
Russia and Venezuela signed the agreement for a
US$ 4 billion credit in December 2011, in order to finance the delivery of
Russian industrial products. More in Spanish: Últimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/rusia-aprueba-la-ampliacion-del-prestamo-a-venezue.aspx#ixzz3aZQI8582)
Politics and
International Affairs
The Wall Street Journal reports Venezuelan officials
suspected of turning country into cocaine hub
The Wall Street Journal reports U.S. prosecutors are
investigating several high-ranking Venezuelan officials, including the
president of the country’s congress, on suspicion that they have turned the
country into a global hub for cocaine trafficking and money laundering,
according to more than a dozen people familiar with the probes. An elite unit
of the Drug Enforcement Administration in Washington and federal prosecutors in
New York and Miami are building cases using evidence provided by former cocaine
traffickers, informants who were once close to top Venezuelan officials and
defectors from the Venezuelan military, these people say. A leading target,
according to a Justice Department official and other American authorities, is
National Assembly President Diosdado Cabello, a former army lieutenant,
considered the country’s second most-powerful man. “There is extensive evidence to justify that he is one of the heads, if
not the head, of the cartel,” said the Justice Department official,
speaking of a group of military officers and top officials suspected of being
involved in the drug trade. “He certainly
is a main target.” Investigations are being run by federal prosecutors who
have wide leeway to target criminal suspects. U.S. authorities say they are far
along in their investigations. But they say any indictments that may result
might be sealed, making them secret until authorities can make
arrests—something that would be difficult if not impossible unless the suspects
travel abroad. U.S. law-enforcement officials say many Colombian traffickers
moved operations to neighboring Venezuela, where they found a government and
military eager to permit and ultimately control cocaine smuggling through the
country. “It is a criminal organization,”
said the Justice Department official, referring to certain members of the upper
echelons of the Venezuelan government and military. At the same time, a group of 16 Democrats in
the US House of Representatives are asking President Barack Obama to lift
sanctions on Venezuelan officials implicated in human rights violations and
drug trafficking. (The Wall Street Journal; http://www.wsj.com/articles/venezuelan-officials-suspected-of-turning-country-into-global-cocaine-hub-1431977784?tesla=y)
Venezuela
opposition held primaries for high-stakes parliament vote, PRIMERO JUSTICIA
leads vote
Venezuela's opposition coalition held primaries on
Sunday for this year's high-stakes parliamentary election, its best shot in
over a decade at recouping the National Assembly at one of the ruling Socialist
Party's lowest ebbs. The MUD umbrella coalition has struggled to articulate
policy proposals and shake an elitist aura, so Sunday's low-profile primaries
were largely a show of mobilization against President Nicolas Maduro. José Luis
Cartaya, head of the MUD's electoral committee, says 543,793 voted, which is
7.4% of registered voters. PRIMERO JUSTICIA, which is led by Miranda Governor
and former Presidential candidate Henrique Capriles Radonski, won 13
nominations; VOLUNTAD POPULAR, headed by imprisoned leader Leopoldo López,
gained 8 positions; the old ACCIÓN DEMOCRÁTICA party secured 7 nominations; UN
NUEVO TIEMPO racked up 5; CUENTAS CLARAS, 2; while the traditional COPEI Social
Christian party and imprisoned Mayor Antonio Ledezma's AVANZADA PROGRESISTA,
won one nomination, each. (Reuters, http://www.reuters.com/article/2015/05/18/us-venezuela-politics-idUSKBN0O20IV20150518;
Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43918&idc=1;
Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2388009&CategoryId=10717;
El Universal, http://www.eluniversal.com/nacional-y-politica/150518/turnout-in-primary-vote-of-opposition-coalition-mud-hits-640000;
and more in Spanish: El Universal, http://www.eluniversal.com/nacional-y-politica/150518/pj-obtuvo-13-candidaturas-en-primarias-de-la-unidad)
US repeats its
concern over freedom of speech in Venezuela
United States has again voiced concern about freedom
of expression in Venezuela, and insists that "the only way" to solve the troubles in Venezuela is
"through a true dialogue instead of trying to silence critics." "We share the concern expressed by the
Inter-American Press Association (IAPA). We have urged many times the
Venezuelan government to improve the environment of respect for human beings
and fundamental liberties, such as freedom of expression and peaceful
association," said a spokesperson for the US Department of State. (El Universal, http://www.eluniversal.com/nacional-y-politica/150518/us-reiterates-its-concern-about-freedom-of-speech-in-venezuela)
Palestinian FM
"proud" of bilateral
relation with Venezuela
Riad al Malki, Palestinian Minister of Foreign Affairs
says that his visit here country is an opportunity to boost the bilateral
relation. In reference to sanctions imposed by the United States on seven
Venezuelan government officials, the Palestinian Minister said that his country
rejected all sort of aggressions against Venezuela and added that the people of
Palestine supported Venezuela unconditionally. (El Universal, http://www.eluniversal.com/nacional-y-politica/150518/palestinian-fm-proud-of-bilateral-relation-with-venezuela)
Felipe González visit to Venezuela postponed until new
López's hearing
Former president of Spain Felipe González will travel
to Venezuela when a new date for the next trial hearing of dissenter Leopoldo
López is scheduled. González called off his visit to Caracas, which was
expected this Monday, when López's hearing was adjourned, AP reported. (El Universal, http://www.eluniversal.com/nacional-y-politica/150518/felipe-gonzalezs-visit-to-venezuela-suspended-until-new-lopezs-hearing)
Venezuela has deported 7,021 Colombians in 3 years
The Foreign Office of Colombia reported that from 2012
to date 7,021 Colombians have been deported from Venezuela due to their
irregular status. The numbers arrived after the Foreign Office of Venezuela
said last Thursday that as many as 494,597 Colombians had entered Venezuela
illegally. Based on Venezuelan data, in 2012-2014, the number of illegal Colombian
residents was "160,984 in 2012;
189.001 in 2013, and 144,612 in 2014". (El Universal, http://www.eluniversal.com/nacional-y-politica/150518/colombia-in-three-years-venezuela-deported-7021-colombians)
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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