Venezuelan Daily Brief

Published in association with The DVA Group and The Selinger Group, the Venezuelan Daily Brief provides bi-weekly summaries of key news items affecting bulk commodities and the general business environment in Venezuela.

Thursday, January 11, 2018

January 11, 2018


Logistics & Transport

 
Venezuela to open air bridge with ABC islands for safe return of people

The Venezuelan government has announced that it will re-open the air bridge with the Caribbean islands of Aruba, Curaçao, and Bonaire, collectively known as the ABC Islands, to allow those in the country to return to their respective countries safely. The decision comes after Venezuelan president, Nicolas Maduro, announced suspending all air and sea travel with the ABC islands for 72 hours as a measure against smuggling of the Venezuelan gold, silver, and copper through the islands. Tareck El Aissami, Venezuela's Vice President said in a tweet that a meeting to combat contraband would be arranged with the islands' authorities to discuss the issue. "High-level meeting with the authorities of these islands" will be arranged to come up with "a plan of action to combat the mafias" who steal and smuggle our goods, he wrote. The ABC islands have asked The Netherlands for help, and the Dutch Foreign Ministry issued a statement saying it is “disappointed” it was not formally informed of the blockade and confirmed conversations are under way between both nations. (Curaçao Chronicle: http://curacaochronicle.com/politics/venezuela-to-open-air-bridge-with-abc-islands-for-safe-return-of-people/); and more in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/internacional/aruba-curazao-y-bonaire-piden-cooperacion-a-paises-bajos-por-bloqueo-de-venezuela; http://www.noticierovenevision.net/noticias/internacional/holanda-lamenta-cierre-de-fronteras-de-venezuela-con-sus-islas-en-el-caribe; El Universal, http://www.eluniversal.com/noticias/politica/holanda-lamento-extension-cierre-fronteras-con-venezuela_683632)

 

Oil & Energy

 
China's debt-ridden GZE taps private refiner for Caribbean project

China’s debt-ridden GUANGDONG ZHENRONG Energy (GZE) has asked a private refining group to join a multi-billion dollar investment in an aging Caribbean oil plant to shore up financing on the deal, said two Chinese executives involved in the matter. The Curacao government last week scrapped a preliminary deal with GZR to operate the century-old Isla refinery, saying the state-controlled commodity trader lacked the financial muscle for the job on its own. Taking over the 335,000 barrels-per-day (bpd) refinery, operated for decades by Venezuela’s cash-strapped state oil firm PDVSA, would give China a foothold in the Caribbean’s second-largest refinery, which has also been a key transfer point for Venezuelan oil heading to Asia. (Reuters, https://www.reuters.com/article/china-caribbean-refinery/chinas-debt-ridden-guangdong-zhenrong-taps-private-refiner-for-caribbean-project-idUSL4N1P31CW)

 

Dutch regulators extend time for PDVSA's oil-facility repair review

Dutch authorities on Tuesday agreed to Venezuela’s state-run oil company PDVSA’s request to extend the time needed to demonstrate its financial ability to repair a decaying oil-storage facility on the Caribbean island of Bonaire. The terminal is a key PDVSA facility and its loss would hurt shipments to customers in Asia. In December, Dutch regulator Human Environment and Transport Inspectorate (ILT) told PDVSA unit Bonaire Petroleum Corp (BOPEC) that it must detail a plan to repair deficiencies and provide the necessary financing or face a loss of its operating license. (Reuters, https://www.reuters.com/article/bonaire-pdvsa-terminal/dutch-regulators-extend-time-for-pdvsas-oil-facility-repair-review-idUSL4N1P44OQ)

 

Algeria sends more oil to Cuba as Venezuelan supplies fall

Algeria sent 2.1 million barrels of crude oil to Cuba last year and will ship the same amount in 2018, an official at state energy firm SONATRACH said on Wednesday, helping Cuba to offset lower supplies from the island’s closest ally, Venezuela. “We delivered in 2017 three times 700,000 barrels, a total of 2.1 million barrels to Cuba,” Omar Maaliou, SONATRACH’s vice president in charge of trade and marketing, told Reuters. “We will do the same this year, the first 700,000 barrels are about to be delivered.” Saharan Blend light sweet crude is Algeria’s main export grade. Cuba and Algeria have maintained a close relationship in recent years. The island annually imports some US$ 200 million to US$ 300 million of oil products from the African country, including some purchases of naphtha. (Reuters, https://www.reuters.com/article/us-algeria-oil-cuba/algeria-sends-more-oil-to-cuba-as-venezuelan-supplies-fall-idUSKBN1EZ28O)

 

No more oil from Venezuela for Haiti

Jude Alix Patrick Salomon, Haiti’s minister of the economy and finance, has revealed that the financial sanctions imposed by the Trump administration against Venezuela, including limiting banking transactions, have resulted in Venezuela no longer sending oil to Haiti since October 2017, because the Bank of the Republic of Haiti is no longer able to make payments in foreign currency. As a result, the PETROCARIBE fund is no longer supplied and Haiti is deprived of this important source of low-rate financing, HaitiLibre reported. This situation now makes things more difficult in Haiti, which must henceforth obtain fuel in the international market and is more exposed to fluctuations in the spot market, while waiting to find a viable alternative, such as long-term fuel orders, which will require guarantees from Haiti. (Caribbean News Now: http://wp.caribbeannewsnow.com/2018/01/10/no-oil-venezuela-haiti-trump/)

 

Commodities

 
Photos of empty grocery shelves show dire situation In Venezuela

Desperate Venezuelans swarmed supermarkets on Saturday in a rare chance to stock up on basic goods amid a spiraling economic crisis that has resulted in widespread poverty and food shortages. Embattled President Nicolás Maduro, who has consistently blamed the nation’s financial woes on low oil prices and a U.S.-led plot to topple his regime, ordered grocery stores to reduce their prices in an effort to fight staggering hyperinflation (Venezuela’s inflation rate reportedly soared to 2,616% in 2017.) The slashed prices prompted mobs of shoppers to flock to the stores, leaving strikingly bare shelves behind. (Huffington Post: https://www.huffingtonpost.com/entry/venezuela-empty-grocery-shelves-photos_us_5a567751e4b08a1f624afcf6; Reuters: https://www.reuters.com/news/picture/venezuelas-empty-shelves-idUSRTX47AWF)

 

Looted supermarkets halt new product orders

Employees report that Venezuela’s looted supermarkets have halted new product orders. “What you see on shelves is what there is. The stockrooms are empty, and we don’t know when new products will arrive. It will be difficult to replace inventories, we don’t know what will happen”, says one. Another confirmed new purchasing has been paralyzed since authorities are forcing them to sell at prices below those provided by suppliers. Government supervisors continue their daily visits and continue to order price reductions. More in Spanish: (El Nacional; http://www.el-nacional.com/noticias/economia/supermercados-supervisados-por-sundde-paralizan-pedidos-proveedores_218122)

 

Economy & Finance

 
Venezuela’s Parliament outlaws Maduro’s cryptocurrency, calls it a “fraud

The Venezuelan Parliament, run by the opposition, voted on Tuesday to declare Nicolas Maduro’s plan to issue an oil-backed cryptocurrency—the Petro—illegal, claiming that it violates the constitution and attempts to mortgage part of the country’s oil reserves. It called the decision “totally null and void.” According to Parliament, the Petro issuance is an attempt by the government to avoid control over public debt operations as set in article 312 of Venezuela’s constitution. While Maduro is recruiting miners for the digital currency, the opposition-led Parliament denounced the cryptocurrency move, called it illegal, and warned potential investors and cryptocurrency market players that the Petro emission is illegal, as is any other obligation by the state of Venezuela backed by oil or other mineral reserves. “This is not a cryptocurrency, this is a forward sale of Venezuelan oil,” legislator Jorge Millan said, as quoted by Reuters. “It is tailor-made for corruption,” Millan added. He said: “We find ourselves before a new kind of fraud, disguised as a solution the (financial) crisis. This incompetent government wants to compensate for lack of oil production with these virtual barrels.” According to digital currency experts, Venezuela’s inability to manage its economy and the Socialist party’s historic lack of respect for private property will deter investors from snapping up Petros.  (Oil Price: https://oilprice.com/Geopolitics/International/Venezuelas-Parliament-Outlaws-Maduros-Cryptocurrency.html; The Coin Telegraph: https://cointelegraph.com/news/venezuela-parliament-calls-presidents-59-bln-petro-cryptocurrency-new-fraud; Reuters: https://www.reuters.com/article/us-venezuela-economy/venezuelas-congress-declares-petro-cryptocurrency-illegal-idUSKBN1EY2H2)

 

… and Petro Superintendent says Venezuela´s “cryptocurrency” allocations to be controlled by regime

Carlos Vargas, the Petro’s Superintendent, says the new “cryptocurrency” cannot be mined and will instead be allocated by the Maduro regime through a bidding system like that used to control normal currency allocations. He claimed over 50,000 have registered for the project. More in Spanish: (El Nacional; http://www.el-nacional.com/noticias/economia/carlos-vargas-petro-podra-ser-minado-asignara-por-subastas_218096)

 

Fund managers set to mark down Venezuela bond holdings

Fund managers holding Venezuela government bonds face a day of reckoning after months of waiting for more than half a billion dollars in late interest payments. Since November, investors following guidelines established by the Emerging Markets Traders Association have marked their Venezuela bond holdings to include all the interest they were owed, even though it hadn’t shown up yet. The trade group decided to scratch that rule Monday, and say that beginning today the nation’s debt will trade flat, or without accrued interest. If the coupons are eventually paid, they’ll go to whoever holds the bonds that day. The decision, which followed a week of talks with market participants, comes two months after rating companies deemed Venezuela to be in default. Typically, defaulted bonds begin to trade flat after the grace period on missed debt payments expires. But with President Nicolas Maduro and his allies repeatedly saying the nation would honor its debt -- and with several delayed coupons on bonds issued by the state oil producer eventually making their way to creditors -- the market had given Venezuela the benefit of the doubt. Recently, the government’s gone silent on its bonds, spurring concern it’s selectively defaulting. Those creditors who’d been following EMTA guidelines will now have to write off the accrued interest they’d accounted for on Venezuelan notes from their net asset value. They should also write down any missed coupons they’re entitled to reflect their expected recovery value. By making these changes in January, money managers avoided suffering the loss in their 2017 performance. The recommendation doesn’t apply to debt issued by state-owned Petroleos de Venezuela, which will continue to trade with a payment for accrued and unpaid interest. Another impact from the change may be that Venezuela’s creditors that had patiently waited for their interest payments may now seek to demand immediate repayment of their principal -- a process known as acceleration. Most bonds require holders of just 25% of an outstanding security to agree to do so. “Acceleration becomes the next step -- and a check to see if Venezuela will quickly cough up the money to pay the coupon and halt a potential acceleration,” Russ Dallen, the managing director at Caracas Capital, wrote in a note to clients. “Venezuela’s reaction to the potential acceleration could be the final clarification for still-hopeful bondholders about whether they were actually going to get paid or not.” (Bloomberg: https://www.bloomberg.com/news/articles/2018-01-09/managers-set-to-mark-down-venezuela-holdings-as-bonds-trade-flat; The Wall Street Journal: https://blogs.wsj.com/moneybeat/2018/01/10/venezuelan-bonds-bake-in-permanent-default/)

 

Venezuela 2020 bond cut to default by S&P

"Venezuela failed to make US$ 45 million in coupon payments for its global bonds due 2020 within the 30-calendar-day grace period," reports global ratings agency S&P. "In line with our criteria for timeliness of payments, we are lowering the issue rating on this bond to 'D' from 'CC'. We are affirming the long-term foreign currency sovereign credit rating on Venezuela at 'SD'." On Jan. 9, 2018, S&P Global Ratings lowered its issue rating on the Bolivarian Republic of Venezuela's global bond due 2020 to 'D' from 'CC'. At the same time, we affirmed our long- and short-term foreign currency sovereign issuer credit ratings at 'SD/D'. The long- and short-term local currency sovereign credit ratings remain at 'CCC-/C' and are still on CreditWatch with negative implications, where we placed them on Nov. 3, 2017. Other foreign currency senior unsecured debt issues not currently rated 'D' are rated 'CC'.  Our CreditWatch negative listing reflects our opinion that there is a one-in-two chance that Venezuela could default again within the next three months. We could lower specific issue ratings to default ('D') if Venezuela doesn't make its overdue coupon payments before the stated grace period expires, or upon the execution of the announced debt restructuring. (Latin American Herald Tribune: http://laht.com/article.asp?ArticleId=2448768&CategoryId=10717; Reuters, https://www.reuters.com/article/brief-sp-says-venezuela-global-bond-due/brief-sp-says-venezuela-global-bond-due-in-2020-rating-lowered-to-d-idUSFWN1P40YL)

 

World Bank estimates 4.2% GDP contraction in Venezuela in 2018

The World Bank’s “World Economic Forecast” estimates that Venezuela’s economy will shrink 4.2% this year. It adds that Venezuela had a 11.9% “recession” in 2017, that was “deeper than had been estimated”. In the meantime, Latin America and the Caribbean grew by 0.9%. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/economia/banco-mundial-estima-contraccion-economia-venezolana_683792)

 

Venezuela reports it paid part of its debt to Brazil four months late

Venezuela’s government has paid part of its US$ 262.5 million four-month overdue import debt to Brazil on January 5th, according to official sources. Brazil’s Ministry of Finance reports it is the balance of a debt due in the Q2 2017. (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/economia/venezuela-pago-con-cuatro-meses-de-atraso-parte-de-su-deuda-con-brasil)

 

Cabello claims Maduro regime to buy top private bank BANESCO for US$ 3.5 million

A top Socialist Party official claimed on Wednesday that Venezuela's government is in talks to buy the country's top private bank, BANESCO, for US$ 3.5 million, potentially expanding state control over a banking sector struggling under soaring inflation. Socialist Party Vice President, Lieutenant Diosdado Cabello, said talks would begin this week and that BANESCO President Juan Carlos Escotet had accepted an offer made by the government. "We're going to buy BANESCO, really cheap," said Cabello, who is a member of an all-powerful legislative body called the Constituent Assembly, during his weekly television show. "We want to thank Escotet. ... BANESCO will become part of the public banking system." Reuters was unable to immediately obtain comment from BANESCO or Mr. Escotet. (CNBC: https://www.cnbc.com/2018/01/10/reuters-america-venezuela-to-buy-top-private-bank-banesco-for-3-point-5-mln-official.html)

 

Politics and International Affairs

 
OP-ED: Scenarios for the future of Venezuela, by Dr. R. Evan Ellis, Research Professor, Strategic Studies Institute, U.S. Army War College. Scenario 1: Muddling through / Chinese-Russian vassal state; Scenario 2: Transition to more rational authoritarian kleptocracy; Scenario 3: Break and successful reestablishment of order by military; and Scenario 4: Breakdown of order and disintegration into chaos.  It is a testament to the deterioration of the situation in Venezuela that none of the most plausible scenarios are “good news” stories, although some are less undesirable than others. It is incumbent on the United States and its partners in Latin America and the Caribbean not only to work together to plan for what could transpire in Venezuela but also to collaborate that other unfolding tragedies do not degenerate to the same extent. See full report: ATTACHED.

 

Law and order breakdown in parts of inflation-hit Venezuela

Shops and homes have been looted for a second day in the once prosperous town of Ciudad Guayana in north east Venezuela. With inflation at the rate of 2,600% many are struggling to buy food and medicines ... that is if they are on sale in the first place. Anger and frustration have sparked unrest and the National Guard are often too stretched to maintain law and order: At least five food stores were looted over-night and police sources say 20 people have been arrested, but its’ not just the shops which are vulnerable, some home have been struck as well. Erika Garcia tearfully recounted how looters ransacked her food shop and home just 10 minutes after National Guard soldiers who had been patrolling the area withdrew late on Monday night (Euronews: http://www.euronews.com/2018/01/10/law-and-order-breakdown-in-parts-of-inflation-hit-venezuela; Reuters, https://www.reuters.com/article/us-venezuela-looting/lootings-scattered-protests-hit-venezuelan-industrial-city-idUSKBN1EY2DV)

 

Video report shows 55 National Guard members arrested in mutiny over food

According to a video circulated on Twitter by journalist Daniel Blanco, some 55 members of Venezuela’s National Guard have been arrested – presumably at the Caracas Fuerte Tiuna garrison – after a mutiny demanding food and more benefits. The video – presumably taped inside the barracks – allegedly took place three days ago. More in Spanish: (NTN24: http://www.ntn24.com/noticia/divulgan-video-de-tropa-de-la-guardia-nacional-en-caracas-que-se-niegan-salir-a-la-calle-por-falta-162396)

 

Teen shot dead in food truck looting here

A 19-year-old Venezuelan was shot dead Wednesday when hundreds of people looted trucks carrying flour and chicken in the western city of Guanare, as the oil-rich but impoverished country faces desperate food shortages. According to police and military reports obtained by AFP the unrest began when about 1,000 people looting the trucks started fighting among themselves. Jose Materan, 19, received two gunshot wounds and died in hospital, where three others were being treated for injuries. It was not immediately clear who fired at him. Many of the looters made off with bags of wheat flour or chicken, police said. There have been in the past several days looting and attempted looting in a number of towns and cities nationwide here. Local universities say 30.2% of Venezuelans face poverty and 51.5% extreme poverty while the government puts the figures at 18.3% and 4.4%, respectively. (Channel News Asia: https://www.channelnewsasia.com/news/world/teen-shot-dead-in-food-truck-looting-in-venezuela-9851026)

 

Talks to ease Venezuela's crisis set to resume

Talks to ease Venezuela's dire political and economic straits are scheduled to resume Thursday, even as severe food shortages fuel looting and the president and parliament spar anew over access to humanitarian aid. To address Venezuelans' desperation, representatives of Maduro's administration and the opposition coalition Democratic Unity Committee (MUD) plan to meet Thursday in the Dominican Republic for two days of renewed talks. On Friday, they're to be joined by international observers: Danilo Medina, the Dominican Republic's president, as well as officials from Bolivia, Chile, Mexico and Nicaragua. The ruling Social Party's team seeks international recognition of the National Constituent Assembly as well as an end to international economic sanctions that have reduced the debt-ridden country's access to foreign currency. The United States considers the Constituent Assembly – an all-powerful super-body packed with Maduro supporters – to be fraudulently chosen and a threat to the democratically elected National Assembly. Opposition representatives – led by the National Assembly's outgoing president, Julio Borges – want the administration to respect that legislature, permit foreign humanitarian aid, release political prisoners and commit to democratic elections. Maduro, who faces re-election in December, has accused Borges of maligning his administration. Simon Calzadilla, an opposition lawmaker expected this week at the talks in Santo Domingo, said the MUD was negotiating in good faith. "We are waiting for an agreement to be reached for the good of the country, to get out of this crisis," he said in a phone interview with VOA. "… I hope the government understands that its model has failed, that institutions must be restored through a comprehensive agreement that gives good news to all." Calzadilla would not comment on whether the Maduro administration's December 24 release of dozens of prisoners stemmed from negotiations earlier that month. "We have agreed to maintain prudence," he said. Previous rounds of negotiations have left deep fissures in Venezuela's opposition. The talks are opposed by political leaders such as Antonio Ledezma, the former Caracas mayor who in November fled house arrest for exile in Spain. "We hope that no one will recognize the National Constituent Assembly or request the lifting of sanctions against individuals accused of corruption and violating human rights," he said on social media last month. Richard Blanco, a National Assembly lawmaker and head of the opposition group July 16 Fraction, also said last month that he had low expectations for the talks. "There will be no results of any kind here," he predicted. "Nothing will happen at all." (VOA News: https://www.voanews.com/a/talks-to-ease-venezuelan-crisis-set-to-resume/4202199.html)

 

National Assembly president says all laws from ANC are null and void

Omar Barboza, the new President of Venezuela’s legislature, says that no law proclaimed by the pro-regime Constitutional Assembly (ANC) is valid since this is the exclusive right of the legitimate National Assembly. He says: “The Constitutional Assembly is not legal or constitutional, it is simply a political fact because if they approve something, and the government and the Armed Forces – or some parts of the Armed Forces – support them, they are of course a reality we cannot deny exists ---- so when they approve laws they are merely usurping functions, because approving laws is remains with the National Assembly.”  He expressed concern over Venezuela’s economic predicament and supported upcoming talks between the regime and the opposition. More in Spanish: (Noticiero Venevisión, http://www.noticierovenevision.net/noticias/politica/omar-barboza-ninguna-ley-que-apruebe-la-asamblea-nacional-constituyente-tiene-validez)

 

Opposition groups to take to the streets again if negotiations fail

Congressman Juan Andrés Mejía, of the Voluntad Popular (VP) opposition party that is headed by jailed leader Leopoldo López, says they will again take to the streets defending the rights of the people if negotiations starting today in the Dominican Republic fail. He said everything indicates “we will not be able to move forward in this alleged negotiation” and blamed the Maduro regime for its failure. More in Spanish: (Noticiero Venevisión: http://www.noticierovenevision.net/noticias/politica/partido-de-leopoldo-lopez-dice-si-la-negociacion-fracasa-estara-en-la-calle)

 

Regime continues its excessive and arbitrary response to protests

On December 27, the powerful Chavista politician Diosdado Cabello announced the detention of Jonatan Diniz, a Brazilian living in Los Angeles who was visiting Venezuela for a nongovernmental group that he directs, which provides food and aid to people in need. Diniz had been detained, Cabello said, for “belonging to a criminal organization with international reach.” Cabello accused Diniz of using the organization as a “façade” to receive “dollars” and to “finance terrorists.” After Diniz spent nearly 10 days incarcerated at intelligence headquarters in Caracas, the Brazilian Foreign Affairs Ministry was able to negotiate his release and departure from Venezuela. Many others haven’t been so lucky. Since 2014, dozens of political prisoners have been held at the same intelligence offices where Diniz was held, some of them for months on end. A crackdown on dissent between April and July 2017 left dozens of people dead, hundreds injured, and thousands detained. More than 750 civilians have been prosecuted—improperly, in military courts—for offenses including rebellion and treason. Detainees have been systematically abused and in some cases tortured by techniques that include electric shock and asphyxiation. Most of these crimes have gone unpunished. In December, several street protests broke out in Venezuela after the government failed to deliver pernil—a leg of pork traditionally served at Christmas in Venezuela—to Venezuelans with access to boxes with food items subject to government price controls. Officials had promised to include pernil in the boxes, and in a country facing severe shortages of food, this was a valuable opportunity for people to secure protein, which is limited in many Venezuelans’ diet. On December 31, a member of the Bolivarian National Guard who, according to witnesses, was drunk, opened fire without warning on a line of people waiting for the expected rations of pernil, killing an 18-year-old pregnant woman who had stood in line for hours. After the news of the killing went viral, a Bolivarian National guard sergeant was detained in relation to this case. During a protest in Valencia on January 3, 30 people partially closed a road, burned tires in front of a mayor’s office, insulted security agents, and shouted: “Damn Nicolás Maduro!” At the protest, police detained Ronald Cevilla, 25, and Erika Palacios, 41. The charges against them include “instigating hatred”—a crime established in November by the pro-government Constituent Assembly that seized powers from the opposition-led National Assembly in August. The vague and overbroad language of the law imposes prison sentences of up to 20 years for those who “encourage, promote, or incite hatred.” Cevilla and Palacios remain behind bars. No independent institutions remain in Venezuela to act as a check on executive power. Without strong international pressure, 2018 may well be the year in which Venezuela’s government entrenches its repressive powers and the impunity it has enjoyed for terrible abuses. (Human Rights Watch: https://www.hrw.org/news/2018/01/10/why-jonatan-diniz-was-lucky)

 

US and Spain to discuss Venezuela

U.S. Under Secretary of State for Political Affairs Thomas A. Shannon is in Madrid to meet with his Spanish counterparts on “matters of common interest”, such as the situation in Venezuela. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/eeuu-espana-abordaran-madrid-situacion-venezuela_683776)

 

U.S. embassy in Venezuela to begin issuing visas again. But who can afford them?

For the first time in more than 18 months, Venezuelans trying to go to the United States for business or pleasure can apply for a visa in Venezuela. In a statement on its website, the U.S. embassy in Caracas said it will begin accepting applications for B-1 and B-2 visas — used for temporary business and tourism travel — starting Jan. 17. Visa services in the South American country have been suspended since May 2016, when Washington and Caracas both ejected diplomats and the embassy said it didn’t have the staff to process visas. An embassy spokesperson Wednesday said the consular office was now almost fully staffed. The move will be a welcome relief for Venezuelans who have been forced to make a grueling overland trek to neighboring Colombia to apply for a visa. Even so, at a cost of US$ 160 per visa application, the price is prohibitive for most Venezuelans. The minimum wage is equal to about US$ 7 a month. The move comes just weeks after Todd Robinson was appointed as the embassy’s chargé, the highest-ranking official absent an ambassador. In a Spanish-language statement, Robinson said the renewed activity “will help support legitimate trips to the United States while we protect our citizens.” (The Miami Herald: http://www.miamiherald.com/news/nation-world/world/americas/venezuela/article194007524.html)

 

Economic woes forces women into prostitution to feed children

Sputnik Mundo found out how prostitution helped both women survive the economic crisis that has gripped Venezuela for a fourth year. The fall in oil prices, which forms more than 96% of Venezuela's income, led to the strangulation of the country, with a debt of $150 billion. In such a grim situation, children and families with many children became the most vulnerable segment of society. According to some women, on a “good” day they make US$ 4 or 5. However, it is barely enough for them to make ends meet, as they pay for the rent on a daily basis and also hire a taxi that takes them to the brothel and brings them back home. Apart from the tough economic situation the women are forced to deal with, they face heartbreak and emotional pain as well. In Venezuela there are no laws that explicitly prohibit or permit prostitution. The Ministry of Health does not keep prostitution statistics, and female workers say they feel very helpless. According to police reports, in the center of Caracas alone, there are more than 40 brothels of various categories. (Sputnik News: https://sputniknews.com/latam/201801101060658365-venezuela-women-forced-into-prostitution/)

 

Venezuela's 'butt-lift' boom

Brazil has long had a thriving plastic surgery industry that has fueled countless liposuctions, implants, nips and tucks. But recently, the economic woes of Brazil’s northern neighbor Venezuela are prompting more Brazilians to cross the border for surgery, where cosmetic tweaks are far cheaper. The sudden increase in purchasing power has created a unique opportunity for Francisca Maia Vasconcelos, who has built a business, ferrying patients, mostly from the city of Manaus in Brazil, across the border to the Venezuelan town of Puerto Ordaz, where surgeries are cheaper. Though prices vary, a liposuction, breast and buttock augmentation surgery in Venezuela can cost Brazilians around 10,000 real ($3,098). In Brazil the same procedures can cost closer to 30,000 real. (BBC: http://www.bbc.com/capital/story/20180110-venezuelas-butt-lift-boom)

 

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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