August 30th, 2011

Economics & Finance

Venezuela’s Central Bank director predicts economy to continue growing in 2nd half of 2011

Armando León, a director of Venezuela’s Central Bank predicts the South American country’s economy will continue growing in the second half of this year. He says growth will be comparable to the pace from January through June, when the economy grew 4.8% in the first quarter and 2.5% in the second quarter. Expansion during the first half of the year was spurred by increased government spending and high oil prices. (The Washington Post, 08-29-2011; http://www.washingtonpost.com/business/economy/venezuelas-central-bank-director-predicts-economy-to-continue-growing-in-2nd-half-of-2011/2011/08/29/gIQAO9tJoJ_story.html)

Debt soars, as parallel funds grow

According to the Central Bank’s (BCV) balance of payments, the government pays high interest rates for its debt at the same time it places billions of US dollars in funds that allow it to spend without budget constraints. The BCV has reported that the US dollar deposits held in parallel funds, such as the Fund related to the China agreement; the National Development Fund (FONDEN); the Fund for Social Emergencies (Fondo Súbito Social); the National Treasury; state-run oil company Petróleos de Venezuela (PDVSA)" and the Central Bank of Venezuela (BCV), added up to U$D 35.17 billion by the end of June 2011 after the government pumped U$D 15.26 billion into them over the past six months. (El Universal, 08-29-2011; http://www.eluniversal.com/2011/08/29/venezuelas-debt-climbs-parallel-funds-also.shtml)

Gov't has seized 988 companies

The Venezuelan government has seized 988 companies since 2002, according to data from the Venezuelan Confederation of Industries (CONINDUSTRIA). An in-depth analysis of seizures shows that, far from diminishing, government's seizures have increased. So far this year, 401 companies were taken over by Venezuelan authorities, which is 41% over the 284 companies expropriated in 2010. According to CONINDUSTRIA, this scenario "creates legal uncertainty; drives investments away; and reduces the possibility of increasing production," and offers diminishing opportunities for solving such problems as supply and the high cost of living. (El Universal, 08-29-2011; http://www.eluniversal.com/2011/08/29/venezuelan-govt-has-seized-988-companies.shtml)

Guayana holds U$D250 billion in gold, according to Mundo report

Venezuela’s southern Guayana region, which includes the states of Bolivar, Amazonas and part of Delta Amacuro, has 140 million ounces of gold reserves, newspaper El Mundo reported today. The reserves, valued at about U$D 250 billion, include deposits in the El Callao, Brisas del Cuyuni and Las Cristinas mining districts, the Caracas-based daily reported, citing a document from the Ministry of Mining and Basic Industries. (Bloomberg, 08-29-2011; http://www.bloomberg.com/news/2011-08-29/venezuela-s-guayana-holds-250-billion-of-gold-mundo-report.html)

Gov't airs plans on exploration of new gold mines

The Minister of Basic Industries and Mining José Khan says the government will embark on an exploration program to find new gold mines, an operation in the hands of joint ventures under the State control. "The purpose is to undertake a huge plan on certification and exploration of the mines that have been known for many years and discover new deposits," he said, as quoted in a press release from his ministry. (El Universal, 08-29-2011; http://www.eluniversal.com/2011/08/29/venezuelan-govt-airs-plans-on-exploration-of-new-gold-mines.shtml)

Public spending rose 8.1% but consumption rose only 3.1%

Public spending has increased 8.1% from January to July 30 2011 in real terms (indexed for inflation), according to the National Treasury. However, consumption which is one of the main generators of growth increased 3.2%. More in Spanish: (El Nacional, 08-30-2011; http://www.el-nacional.com/www/site/p_contenido.php)

Commodities

Refineries operate 25% below their capacity and the volume of crude oil processed in said refineries has dropped 8.2% in 12 years as a result of delays in investments at the Paraguaná Complex and at El Palito, and Bajo Grande plant in Zulia state and Puerto La Cruz and San Roque plants in Anzoátegui. (Veneconomy, 08-29-2011; http://www.veneconomy.com/site/index.asp?ids=44&idt=27354&idc=4)

Refineries show U$D 10.2 billion in lost yield

Petróleos de Venezuela (PDVSA) refining figures are showing red. Costs and expenses exceed income. Numbers by the end of last year indicate losses of U$D 10.2 billion that were only be offset by higher revenues received from oil sales. Refined products revenue reached U$D 24.8 billion, but that amount covered only 71% of operating costs and expenses, which were at U$D 35 billion. More in Spanish: (El Nacional, 08-30-2011; http://www.el-nacional.com/www/site/p_contenido.php)

BCV has funded PDVSA by Bs 42.5 billion

Jose Guerra, who has served as manager of economic research at the Central Bank, says that by the end of July this year official indicators show "PDVSA – the state owned oil company - has been funded with Bs 42.5 billion, a figure that is nearly U$D 10 billion at the official exchange rate." More in Spanish: (El Universal, 08-30-2011; http://www.eluniversal.com/2011/08/30/en-ao-y-medio-el-bcv-financio-a-pdvsa-con-bs-425-millardos.shtml)

Local stock market up 52.93%

Venezuela stocks rose 0.33% last week on a return to low volumes, with barely 75,000 shares trading all week. Of the five stocks that changed price, four were up and one was down, with Electricidad de Caracas increasing the most to Bs. 0.2 for a 5.3% increase, Envases Venezolanos rose 5% at Bs. 21, CANTV rose 3.9% to Bs. 6.75 and Banco Provincial continued its ascent, rising 2.9% to Bs. 36. The lone stock to go down was Corimon, down 20% at Bs. 228. (Latin American Herald Tribune, 08-29-2011; http://www.laht.com/article.asp?ArticleId=420613&CategoryId=10717)

Transfer of shares suspended at the Caracas stock exchange

The National Securities Commission has ruled that intervened, liquidated or suspended brokerage firms may not sell or transfer its shares in the Caracas Stock Exchange. More in Spanish: (El Universal, 08-30-2011; http://www.eluniversal.com/2011/08/30/suspenden-transferencia-de-acciones-de-la-bolsa-de-caracas.shtml)

Politics

Chavez undergoes third chemo session in Venezuela

President Hugo Chavez is undergoing a third round of chemotherapy for cancer at home in Venezuela beginning Sunday, he said, instead of traveling to Cuba where he had two previous rounds of treatment. The socialist leader underwent surgery in Havana in June to remove a baseball-sized tumor, then returned to the communist-led island twice for chemotherapy as the guest of his friend and mentor, former Cuban leader Fidel Castro. (Reuters, 08-27-2011; http://www.reuters.com/article/2011/08/27/us-venezuela-chavez-idUSTRE77Q2XH20110827)

Venezuela puts signs in buses to fight world's highest murder rate

The government of President Hugo Chavez said Thursday it is adding a new weapon in its fight against the world's highest murder rate: signs in buses. According to the Interior and Justice Ministry, the signs will say “Firearms-free zone”. Venezuela’s murder rate has skyrocketed since Hugo Chavez took office in 1999, growing from 4,450 murders in 1998 to a projected 19,000-plus murder this year. The Chavez government has announced 33 different “security” plans, roughly three a year, since he took over, and the post of Interior & Justice minister has been held by 12 ministers in 12 years. (Latina American Herald Tribune, 08-25-2011; http://www.laht.com/article.asp?ArticleId=419627&CategoryId=10717)

"No de facto government can be established in Venezuela", says Heinz Dieterich

In a recent article posted on the Kaosenlared website, Heinz Dieterich described how his ties with Hugo Chávez began to deteriorate since 2005. He says the president does not want to hear Dieterich's assertion that "there is no socialism here, not in the historical sense of the term." From then on, the German Marxist sociologist, a professor at Universidad Nacional Autónoma de México (UNAM) and creator of the "Socialism of the 21st Century" thesis, fell from grace. Execrated, he progressively lost his status as ideologist of Chavezism, and in 2007 the final breakdown took place. (El Universal, 08-27-2011; http://www.eluniversal.com/2011/08/27/no-de-facto-government-can-be-established-in-venezuela.shtml)

Capriles will be officially launched in October

The governor of Miranda, Henrique Capriles Radonski, announced that the official launching of his campaign as presidential candidate will take place next October, and after the event he will begin touring the country. More in Spanish: (Tal Cual, 08-29-2911; http://www.talcualdigital.com/index.html)

Colombia considers security is still a challenge for Venezuela

Colombian Foreign Minister Maria Angela Holguin has noted rebuilding relations with Venezuela and Ecuador, but says "there is still a challenge in terms of security." However, she emphasized that agreements have been signed for the fight against crime and drugs. More in Spanish: (El Universal, 08-29-2011; http://www.eluniversal.com/2011/08/30/para-colombia-la-seguridad-es-un-desafio-con-venezuela.shtml)

Andean Community keeps open doors for Venezuela

CAN Secretary General Adalid Contreras says no official steps have been taken for a potential return of Venezuela, but considers it "the right timing" due to positive development prospects in the Andean trade bloc, composed of Bolivia, Colombia, Ecuador and Peru. More in Spanish: (El Universal, 08-29-2011; http://www.eluniversal.com/2011/08/29/can-keeps-the-doors-open-to-venezuela.shtml)

Ambassador of Venezuela left Tripoli

Venezuela's ambassador to Libya, Afif Tajeldine has left Tripoli, according to his son, Basem Tajeldine, who says

"For reasons of security is no longer there, but in an area of the Maghreb, North Africa". More in Spanish: (El Nacional, 08-30-2011; http://www.el-nacional.com/www/site/p_contenido.php)

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.

July 22th, 2011

Economics & Finance

Venezuela’s possible debt crisis

Greece may have to move over. While global investors and financial regulators have been transfixed in recent months on a possible European debt crisis, Venezuela, a major oil exporter, ranks just behind the cradle of Western civilization in terms of the risk of defaulting on its debt and roiling global financial markets. Will its petrodollars be enough to keep it from default? While analysts say yes for now -- and probably for as long as oil prices stay high -- the long-term odds are not as good. London consultancy CMA Datavision July 7 gave Venezuela a greater than 51.4% chance of defaulting on its sovereign debt within five years. That puts it right behind Greece, which tops CMA’s list with an 80.6% chance. (Platts, 07-19-2011; http://www.platts.com/NewsFeature/2011/venezuela/index)

Venezuela bonds slide on speculation sale will top U$D 4 billion

Venezuelan bonds fell on speculation the government will sell more than U$D 4 billion of bonds to finance government programs, swelling the supply of debt in international markets. The yield on Venezuela’s benchmark 9.25% dollar bonds due in 2027 rose 15 basis points to 13.05% in New York, according to data compiled by Bloomberg. The price on the bonds fell 0.82 cent on the dollar to 74.63 cents. Speculation is mounting that the offering will total about U$D 4.2 billion. A Finance Ministry press official declined to comment on the sale. (Bloomberg, 07-20-2011; http://www.bloomberg.com/news/2011-07-20/venezuelan-dollar-bonds-slide-as-investors-anticipate-4-billion-offering.html)

International reserves at $ 29.923 million

International reserves closed yesterday at U$D 29.923 million, having increased by U$D 473 million, according to the Central Bank of Venezuela (BCV). More information in Spanish. (El Mundo, 07-22-2011; http://www.elmundo.com.ve/noticias/economia/politicas-publicas/reservas-internacionales-llegaron-a-$29-923-millon.aspx)

Government to ban unauthorized price increases

The just published law on Costs and Prices authorizes Government control over any and all production, importation and marketing of all products and services it deems priority to ensure the population’s well being. The text on “Integrated National Costs and Prices” establishes controls on companies with profits deemed excessive in proportion to cost structures of goods produced and sold or services rendered. Companies are now required to inform and request permission from the government when they change production costs or prices. The act requires labeling that indicates amounts are calculated according to the new system. More information in Spanish. (El Nacional; 07-20-2011; http://www.el-nacional.com/www/site/p_contenido.php)

Experience shows market distortion has forced relaxation of price controls on 48 items

While the Executive insists on price controls as a strategy to stem the rise in prices, Central Bank figures reveal it has not been effective in combating inflation. After eight years of price regulations, the government has had to admit distortions generated by controls over the economy, and to authorize increases in regulated areas at least once a year and release product prices. It has had to exclude 48 controlled items from the original list of 106 retail food products published in February 2003. More information in Spanish. (El Universal; 07-21-2011; http://www.eluniversal.com/2011/07/21/distorsiones-del-control-han-obligado-a-liberar-48-rubros.shtml)

World Bank to hear Koch arbitration against Venezuela

The World Bank will hear an arbitration case requested by U.S. company Koch Industries after Venezuela's President Hugo Chavez nationalized a fertilizer plant it owned with the OPEC nation's state oil firm. The World Bank's investment dispute body ICSID says on its website it will form a tribunal to hear the complaint by two subsidiaries of Koch, one of the world's largest privately owned companies. (Reuters, 07-20-2011; http://www.reuters.com/article/2011/07/20/venezuela-koch-idUSN1E76I27U20110720)

Commodities

OPEC certifies growth of Venezuelan oil reserves by 339% in last 5 years

The project Magna Reserva, launched in June 2005 to quantify and certify oil reserves at the Orinoco Oil Belt, was the key for Venezuela to become the country with the world’s largest oil reserves, adding up 296.5 billion barrels by the end of 2010. Said figure shows an increase of 339% of certified reserves in the last five years. According to the annual report issued by the Organization of Petroleum Exporting Countries (OPEC) in 2006, Venezuela owned a total of 87.32 billion barrels of certified reserves. Venezuela ranks over big oil exporting countries, such as Saudi Arabia (264.52 bn b); Iran (151.17 bn b); and Iraq (143.1 bn b). (AVN, 07-20-2011; http://www.avn.info.ve/node/68240)

Venezuela boosts proven natgas reserves by 11.3 tcf

Venezuela boosted its proven reserves of natural gas by 11.3 trillion cubic feet (tcf), taking reserves to 195.1 tcf as of the end of 2010, according to the government's gazette circulating on Wednesday. The gazette did not specify from where the new reserves came. (Reuters, 07-20-2011; http://www.reuters.com/article/2011/07/20/venezuela-gas-idUSN1E76J0DK20110720)

PETROBAR’s debt with PDVSA is the result of the subsidy on gasoil prices, as well as a series of illegal operations and administrative sloppiness by the Paraguayan state oil company and prohibited by the Public Contract’s Office. Other multi-million dollar amounts that are part of the debt were due to the purchase of fuels from PDVSA without signed contracts. (Veneconomy, 07-21-2011;  http://www.veneconomy.com/site/index.asp?ids=44&idt=26819&idc=4)

Politics

DATANALISIS warns opposition results depend on official failure

José Antonio Gil Yepes, president of DATANÁLISIS, says that despite poll figures that show the opposition with a good chance of winning the 2012 presidential election, results depends largely on one factor controlled by the Government: "The main source of votes for the opposition is not from offering, or leadership, but what the other side (the government) does or does not". He explained that according to their statistics voting intentions between Hugo Chavez and combined opposition candidates are in a stalemate. More information in Spanish. (El Universal; 07-21-2011; http://www.eluniversal.com/2011/07/21/advierten-que-la-oposicion-depende-del-fracaso-oficial.shtml)

Role reversal: Latin America taunts US on debt woes

After three decades spent battling their own debt crises and getting constantly lectured about them by Uncle Sam, many Latin Americans are watching the countdown to a possible default in Washington with a mix of “schadenfraude” and fear of what a collapse might mean for them. For everybody from presidents on down to street vendors, seeing US politicians argue over where to make painful budget cuts has also been a reminder that those days are over in Latin America. For now, at least, as most of the region enjoys an era of economic prosperity and comparatively tiny deficits. (Reuters, 07-20-2011; http://www.reuters.com/article/2011/07/20/us-latinamerica-usa-idUSTRE76J5XS20110720)

Peru and Venezuela Andean Community tariff preferences extended for 90 days

Peru and Venezuela agreed to extend Andean Community tariff preferences between the two countries for 90 days, according to Peruvian Minister of Foreign Trade, Eduardo Ferreyros, who said: "Both countries expressed their agreement to maintain the tariff preferences in force from July 22, 2011, and within 90 additional days, with the objective of concluding negotiations for a Trade and Productive Complementarities between Peru and Venezuela". More information in Spanish. (El Mundo, 07-22-2011; http://www.elmundo.com.ve/noticias/economia/politicas-publicas/peru-y-venezuela-prorrogan-preferencias-arancelari.aspx)

Provisional tariff agreement with Colombia could be extended

The deadline set by the governments of Hugo Chavez and Juan Manuel Santos to maintain trade agreements between the two countries after Venezuela’s formal withdrawal from the Andean Community (CAN) ended as of July 21st.

At the time the extension was enacted President Santos had said: “As there is yet no new agreement, it was decided to extend the rules that now govern for three months, extendable, as the teams are still in negotiation". According to the Executive President of the Venezuela-Colombia Chamber of Commerce (CAVECOL) Luis Alberto Russián, some experts another extension of the 18 April agreement “is automatic”, while others believe a new decision should be published in order to eliminate any doubt. More information in Spanish. (El Universal; 07-22-2011; http://www.eluniversal.com/2011/07/22/proponen-que-venezuela-regrese-y-refunde-a-la-can.shtml and http://www.eluniversal.com/2011/07/21/vence-prorroga-de-acuerdo-comercial-con-colombia.shtml)

US Congress eliminates aid to Venezuela and allies

The US House Committee on Foreign Affairs has passed an amendment to remove in FY2012 US assistance to Argentina, Bolivia, Ecuador, Nicaragua and Venezuela. The move, championed by Republican Connie Mack -Chairman of the Subcommittee on the Western Hemisphere- cuts out U$D 96 million requested by President Barack Obama in February. The decision does not include government funds to NGOs, AP reported. (El Universal, 07-22-2011; http://english.eluniversal.com/2011/07/21/us-congress-deletes-aid-of-venezuela-and-allies.shtml)

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.

March 28th, 2011

Economics & Finance

Venezuela ranks lowest in growth among oil producing nations

In its recent report on the global economy a leading British investment bank, Barclays Capital, compared growth in 1999-2010 for Latin American countries and members of the Organization of the Petroleum Exporting Countries (OPEC). The report showed that despite high revenues, Venezuela performed badly over the past 12 years. The numbers show that OPEC Member States, except for Iraq, grow 6.1% annually. Latin American countries, with Venezuela joining the bigger economies in the region -Brazil, Argentina, Colombia, Mexico and Peru- grew by 3.4%. In contrast, Venezuela barely reached an average annual growth of 2.3%, despite skyrocketing oil prices that injected USD$ 529 billion into the government vaults. (El Universal, 03-25-2011; http://english.eluniversal.com/2011/03/25/venezuela-is-the-oil-producing-state-with-the-lowest-growth.shtml)

Private exports fell by 32, 4% during Chávez’s second term in office

The collapse of this economic indicator over the past few years has been highest for the private sector and in non-petroleum exports. Sales for products other than oil were USD$ 3,39 billion in 2009 and USD$ 3,47 billion in 2010, according to the Central Bank. This is a 54,9% drop from 2006 when such exports were a record USD$ 7,61 billion, and the lowest level since 1992. More information in Spanish: (El Nacional; http://impresodigital.el-nacional.com/ediciones/2011/03/28/default.asp?cfg=4498CLKC4084&iu=4626)

Local banks face losses with excess idle funds in their vaults

With a feeble credit demand and a government that uses oil income to inject more local currency into the domestic economy, Venezuelan financial organizations have plenty of cash in their vaults. The mismatch translates into losses. In 2010, banks kept a monthly average of USD$ 3.72 billion above the requisite for legal reserves with the Venezuelan Central Bank (BCV). By¿ February 2011, this average doubled up to USD$ 7.45 billion. Deposits are used to extend loans or buy bonds but local banks have not succeeded in placing funds in an economy where the private sector has been in recession for two years. (El Universal, 03-25-2011; http://english.eluniversal.com/2011/03/25/local-currency-overage-triggers-idle-money-at-banks.shtml)

Venezuelan stock market up 9.57%

Caracas stocks rose on low volume, as the Caracas Stock Exchange Index rose 2.25% to close at 71,587 for the week. Only one stock, Banco Provincial, changed in price, closing at Bs. 30. With many of the largest brokerage firms shut down last year by President Chavez’s government, volume was low all week, with 25,000 shares changing hands over five days of trading ending March 25. (Latin American Herald Tribune, 03-28-2011; http://www.laht.com/article.asp?ArticleId=390338&CategoryId=10717)

Government considers increased price for food staples such as rice, oil, powdered milk, pre-cooked corn flour, sugar, chicken and cheese, informed Venezuelan Food Minister Carlos Osorio. He explained the prices of products at MERCAL will not be increased as the official subsidy will rise from Bs.F.5.2 billion to Bs.F.7 billion. (Veneconomy, 03-25-2011; http://www.veneconomy.com/site/index.asp?ids=44&idt=25408&idc=1)

Oil expert Gustavo Coronel asks for the immediate dismissal of PDVSA board of directors and an in-depth investigation of its true operational, financial and managerial situation.  After reviewing the 2010 Annual Report from State to the National Assembly. Coronel concludes that PDVSA is a bankrupt company, led to failure by inept management and by the president of the Republic who uses it for its personal goals. (Veneconomy, 03-25-2011;

http://www.veneconomy.com/site/index.asp?ids=44&idt=25404&idc=4)

Commodities

Venezuela projects an oil output of 4.5-5.0 mln BPD by 2014

Venezuela aims to boost oil production by two-thirds to 4.5 million or 5.0 million barrels per day (BPD) over the next three years, according to Energy Minister Rafael Ramirez. Ramirez routinely announces high output figures for this OPEC member's main export, which actually has fallen over the past two years. Industry experts point to figures from his ministry, certified by an independent auditor, which show production down to 2.78 million BPD in 2010, from 3.01 million BPD the year before. Ramirez claims current output is some 3.1 million BPD. (Reuters, 03-27-2011; http://in.reuters.com/article/2011/03/27/venezuela-oil-idINN2713051820110327)

Venezuelan oil climbs back to USD$ 100

The Venezuelan oil basket of crude oil and products ended the week at USD 100.15 per barrel, according to the Venezuelan Ministry of Energy and Petroleum. The Venezuelan oil basket returned to the USD 100 level amid an upward trend in oil prices driven by the Libyan conflict and demonstrations in oil-producing countries in the Middle East and North Africa. (El Universal, 03-25-2011; http://english.eluniversal.com/2011/03/25/venezuelan-oil-climbs-again-to-usd-100.shtml)

Ramírez says attacks on Libya are a serious crime against petroleum exporting countries

Venezuela’s Oil Minister and President of the state oil company PDVSA, Rafael Ramirez, said Sunday that the military aggression against Libya represents a serious crime against the petroleum exporting countries. During an interview withe a local TV show, Ramirez said Libya is one of the main producing nations in Africa and a founding member of the Organization of Petroleum Exporting Countries (OPEC). He also claimed that Venezuela has the world’s largest oil reserves and a production of close to 3.16 million barrels per day BPD. (AVN, 03-28-2011; http://www.avn.info.ve/node/50383)

PETROANDINA to invest USD 240 million in exploration

PETROANDINA, a joint venture between Bolivian and Venezuelan state-owned energy companies, plans to invest USD$ 240 million this year in exploration for new oil and gas reserves, according to Bolivian officials. The Bolivian company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), noted that it has a 40% interest in exploration activities in traditional and non-traditional areas. (El Universal, 03-25-2011; http://english.eluniversal.com/2011/03/25/petroandina-to-invest-usd-240-million-in-exploration.shtml)

PDVSA plans on revamping exploration units to raise output

Petróleos de Venezuela, S.A., Venezuela’s state-owned oil company, is planning to restructure its exploration and production division to increase output and boost efficiency. The exploration and production division of PDVSA, as the Caracas-based company is known, will create a new unit to oversee projects in the heavy crude Orinoco Belt, a Venezuelan newspaper reported today, without identifying its sources. PDVSA’s oil output declined by 3.9% last year, after disputes with oil service providers and refinery power outages. Eulogio Del Pino, a vice president at PDVSA, will continue to head the exploration and production division, which will absorb PDVSA’s unit that oversees international joint ventures with private oil firms known as CVP. (Bloomberg, 03-28-2011; http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aEnbBP5cJe9g)

Briquette production at 28% capacity

Briquette production has collapsed in less than two years. The "Giordani Plan" to create a completely state-owned enclave, using Guayana for the experiment, is a glaring failure. The "Plan for a Socialist Guayana 2019, calls for the "the disappearance of dissolved companies and stifling centralism of "corporate social iron-steel and aluminum." MATESI COMSIGUA, VENPRECAR, and FERROMINERA produced one million 739 thousand tons of product in 2010. Production is now a mere 28% of that figure. More information in Spanish. (Tal Cual, 03-28-2011; http://www.talcualdigital.com/index.html)

Politics

Venezuela seeks commercial pact with Colombia in view of its own imminent departure from the Andean Community

According to diplomatic sources in both countries, Venezuela’s Government presented Colombia´s a draft bilateral trade agreement in order to fill a void left by its own exit from the Andean Community. According to Colombian Foreign Minister María Ángela Holguín, the initiative was left with Colombia last week, as it´s government has been negotiating a similar agreement since last November with their Venezuelan counterparts. The proposal will be discussed by President Juan Manuel Santos and Hugo Chávez during their forthcoming meeting in Cartagena. The Minister made the announcement at a joint press conference with her Venezuelan counterpart, Nicolás Maduro, in Bogotá; adding that the expect further progress during the Presidential meeting next Friday. (More information in Spanish: La República/ Bogotá) - http://www.noticieroindustrial.com/site/comercio/562-acuerdo-comercial-con-colombia-busca-venezuela-ante-su-salida-de-la-can

Chávez visits Argentina, Uruguay, Bolivia, Colombia

Venezuelan President Hugo Chavez will be on tour beginning March 27, to 4 South American countries to strengthen integration and review the progress of agreements made with countries of the region. He reaffirmed that he will travel to Argentina, Uruguay, Bolivia and Colombia to strengthen regional integration. (AVN, 03-27-2011; http://www.avn.info.ve/node/50295)

Venezuela poll: Preferences split, many undecided

A poll suggests Venezuelans are split between President Hugo Chavez and the opposition, although a sizable one third is undecided about whom they would vote for if elections were held soon. Luis Vicente Leon, director of the polling firm DATANALISIS, said Thursday that results of a survey last month said 26% of those questioned were sure they would vote for Chavez if elections were held within a week. Support for all the opposition's potential candidates reached 28%, while 34% of those surveyed said they were undecided. More than 13% said they would not vote for anybody. (Boston, 03-24-2011; http://www.boston.com/news/world/latinamerica/articles/2011/03/24/venezuela_poll_preferences_split_many_undecided/)

Venezuela’s Chavez supports Syrian leader amid protests, blames US for unrest

Venezuelan President Hugo Chavez expressed support for Syria’s president on Saturday, calling him a “humanist” and a “brother” facing a wave of violent protests backed by the United States and its allies. Chavez’s support for President Bashar Assad follows his defense of Libyan leader Moammar Gadhafi, who is fighting rebels backed by international airstrikes. Venezuela’s socialist leader accused Washington of fomenting the protests in Syria as a pretext for Libya-style airstrikes. (The Washington Post, 03-26-2011;

http://www.washingtonpost.com/world/venezuelas_chavez_offers_supports_to_syrian_leader_amid_protests_blames_us_for_unrest/2011/03/26/AFFCkteB_story.html?wprss=rss_world)

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.