International Trade
Cargo that has arrived in Puerto Cabello:
- 23,000 tons of durum wheat from
Canada for Pastas Sindoni C.A.
- 11,132 tons of chicken from JBS
S/A for CASA
- 4,000 tons of calcium phosphate
from North Carolina
- 2,999 tons of degummed soybean
oil from CARGILL US for Alimentación Balanceada (ALIBAL)
- Over 656 tons of milk in 22
vans from JBS S/A for CASA
Cargo that has arrived
at La Guaira:
- 20,000 tons of wheat from
Canada for government agencies.
Logistics & Transport
Frontier airport closings further isolate Táchira
state
Two airports near the
Venezuela-Colombia border have been shut down until further notice, adding to
the isolation of Táchira state. The only airport functioning in Táchira is in
the town of La Fría, some 40 kilometers from the state capital of San
Cristóbal. More in Spanish: (El Universal, http://www.eluniversal.com/economia/150827/cierre-de-aeropuertos-en-frontera-con-colombia-complica-acceso-a-tachira)
Oil &
Energy
Maduro says Venezuelan
oil price down to US$ 35 per barrel, could go down to US$ 30 or less
President Nicolás Maduro has announced that the
price for Venezuelan oil dropped down to US$ 35 per barrel, and added "I think it will go to US$ 30 or will go
lower". Maduro went on to say: "We are maneuvering to see if an alliance between OPEC and Russia allows
us to achieve the miracle of stabilizing prices". He said that despite
this social spending would not be reduced. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/petroleo/pdvsa/maduro--crudo-venezolano-cae-a-35-dolares-por-barr.aspx#ixzz3jykkuJQM)
Crisis in Venezuela likely
to worsen further after slump in oil prices
Venezuela, a country that boasts having the
world's largest oil reserves in the world, is now in ruins, literally speaking,
despite having enjoyed a winning streak due to a sustained boom in crude oil
prices for more than a decade.
A "winning" streak during the worst possible moment in the history of the country, when a ruling elite used the resources for (1) establishing a political-social and economic project demonstrably failed in other times and latitudes; (2) buying allegiances within the region and fund similar projects in other countries of the hemisphere; and (3) feeding the hunger for easy riches of its national and foreign counterparts. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2395144&CategoryId=10717)
A "winning" streak during the worst possible moment in the history of the country, when a ruling elite used the resources for (1) establishing a political-social and economic project demonstrably failed in other times and latitudes; (2) buying allegiances within the region and fund similar projects in other countries of the hemisphere; and (3) feeding the hunger for easy riches of its national and foreign counterparts. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2395144&CategoryId=10717)
Three years without an explanation
This week marked the three year anniversary of
the fire at the Amuay Refinery that resulted in 42 fatalities, five missing
people, 135 wounded and material losses for US$ 1.1 billion. Three years later,
there has been no official information as to the causes of the tragedy and
PDVSA’s President and recently appointed Oil and Mining Minister Eulogio del
Pino wrote in his Twitter account; “Three
years ago, the Right attacked… Amuay… seeking to destabilize our Homeland.”
(Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=45245&idc=4)
Economy
& Finance
FEDECAMARAS estimates 9-10% GDP drop this year
FEDECÁMARAS,
Venezuela's principal business federation, estimates the nation's GDP could
contract 9-10% this year due to "two
great bottlenecks": "strict
controls" on FOREX and prices. FEDECÁMARAS President Francisco
Martínez says: "we have a weak
economy because trust is gone". More in Spanish: (Ultimas
Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/fedecamaras-estima-que-pib-caera-entre-9-y-10-en-2.aspx#ixzz3k0Yuids6;
El Universal, http://www.eluniversal.com/economia/150827/empresarios-proponen-agenda-para-la-reactivacion;
El Mundo, http://www.elmundo.com.ve/noticias/economia/gremios/fedecamaras-estima-que-pib-caera-entre-9--y-10---e.aspx;
El Nacional; http://www.el-nacional.com/)
Venezuela is adding
more zeroes to its currency to deal with hyperinflation
Venezuela is preparing to issue bank notes in
higher denominations next year as rampant inflation reduces the value of a
100-bolivar bill to just 14 cents on the black market. The new notes -- of 500
and possibly 1,000 bolivars -- are expected to be released sometime after
congressional elections are held on Dec. 6, said a senior government official
who isn’t authorized to talk about the plans publicly. Many Venezuelans have to
carry wads of cash in bags instead of wallets as soaring inflation and a
declining currency increase the number of bills needed for everyday purchases.
The situation is set to get worse. Inflation, already the fastest in the world,
could end the year at 150%, said the official. (Bloomberg, http://www.bloomberg.com/news/articles/2015-08-26/venezuela-said-to-ready-larger-bank-notes-as-inflation-soars)
JP Morgan projects Venezuela's 2016 deficit at
US$ 16 billion
JP Morgan reports
that Venezuela's need for external financing will be up to US$ 16 billion in
2016, as the gap between income and outflows is 200% above 2015 estimations. Total financing required is
estimated at US$ 24 billion, US$ 2 billion less than in 2015, but the nation
will only be able to cover up to US$ 8 billion, which means there could be a
US$ 16 billion deficit. The report estimates average oil prices for 2016 at US$
40 per barrel. It also estimates an 8.8% reduction in imports. More in Spanish:
(El Nacional; http://www.el-nacional.com/)
30% of Venezuelans are having only two meals or
less a day, as a
result of shortages and inflation, according to Consultores 21, cited in an
article published by The Wall St. Journal. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=45243&idc=1)
Politics and
International Affairs
Distraught Colombians
flee Venezuela as border dispute intensifies
Hundreds of Colombians waded across a border
river with fridges, chickens and mattresses on their backs as goats and
children followed under the scorching tropical sun, victims of an escalating
dispute with Venezuela's government. Saying they were forced from their rickety
wooden or corrugated metal homes and scared of what might happen next if they
stayed inside Venezuela, they fled across the River Tachira and back into their
homeland. Most of the refugees have lived for years in Ernesto Guevara, an
extremely poor Venezuelan border village, or other nearby settlements, but they
were forced to leave after Venezuelan authorities marked their homes with a
"D" for "demolition" over the weekend. Venezuela says it is
cracking down on paramilitary and smuggling gangs active along the border but
the families fleeing said they had nothing to do with crime along the long and
porous border plagued by drug trafficking, paramilitaries, left-wing guerrillas
and smugglers. Maduro last week closed an official border crossing near here
and suspended some constitutional guarantees along parts of the border,
allowing authorities the right to search homes and businesses without a warrant,
after Venezuelan soldiers were injured in a firefight with smugglers. Across
the river on Colombian soil, authorities are helping the distraught families
find refuge. The Colombian government says more than 1,000 people have been
unfairly deported. "Flattening
houses, using force against people, separating families, not allowing them to
take their few possessions and marking the houses for demolition is totally
unacceptable and is a reminder of bitter episodes of humanity that cannot be
repeated," President Juan Manuel Santos said. (The New York Times: http://www.nytimes.com/reuters/2015/08/26/world/americas/26reuters-venezuela-colombia.html;
Reuters, http://www.reuters.com/article/2015/08/26/us-venezuela-colombia-idUSKCN0QV0F520150826;
Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2395058&CategoryId=10717;
Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=45233&idc=1;
El Universal, http://www.eluniversal.com/nacional-y-politica/150825/over-1000-colombians-deported-from-venezuela)
Maduro rules out
re-opening border with Colombia
President Nicolas Maduro has reiterated the
border with Colombia will remain closed until minimum conditions are met,
including the capture of the perpetrators of the attack on Venezuelan military
and the dismantling of 'paramilitary groups' in the area. "The border will remain closed gentlemen,
until we re-establish a minimum of coexistence, respect for law and life, and
economy," Maduro said at a press conference. "It will remain closed, no matter what they
say in Bogota, in Cucuta, I do not care what they say about me."
Maduro said last Thursday's attack on three soldiers and a civilian, "was not accidental, but an order, for which
100 million Colombian pesos were paid." (Latin American Herald
Tribune, http://www.laht.com/article.asp?ArticleId=2395056&CategoryId=10717)
Santos: Venezuela's
problems are not made in Colombia
"Venezuela's
problems are made in Venezuela; they are not made in Colombia or elsewhere in
the world," says Colombian President Juan Manuel Santos referring to a
border crisis that has generated thousand deported Colombians due to the state
of emergency decreed by Venezuelan President Nicolás Maduro. "Shortage in stores, in supermarkets, is
worse than in Kabul or Syria," Santos added. Meanwhile, the
humanitarian crisis continued on Venezuela-Colombia border due to the
deportation, since last Friday, of more than one thousand Colombians residing
in Venezuela. (El Universal, http://www.eluniversal.com/nacional-y-politica/150826/santos-venezuelas-problems-are-not-made-in-colombia)
Foreign Ministers
meeting fails to reach agreement on opening borders
Foreign Affairs Ministers María Angela Holguín
(Colombia) and Delcy Rodríguez (Venezuela) met for six hours in Cartagena to
seek an end to border crisis, but failed to reach an agreement on reopening the
border. They agreed to combat smuggling and other crimes along the border, and
said Defense Ministers would later meet. More in Spanish: (El Nacional; http://www.el-nacional.com/; Agencia
Venezolana de Noticias; http://www.avn.info.ve/contenido/venezuela-y-colombia-acordaron-construir-conjunto-una-nueva-frontera-productiva-y-paz;
El Universal, http://www.eluniversal.com/nacional-y-politica/150827/venezuela-y-colombia-acuerdan-acciones-conjuntas)
Cabello says "we will declare a state of siege on all our borders if necessary"
Lieutenant Diosdado
Cabello, President of the National Assembly, announced the approval of a
special decree during a meeting of pro regime legislators and the Táchira,
Zulia and Mérida state governors. "If
it is necessary to declare a state of siege on all of Venezuela's borders, we
legislators will raise both our hands. Count on us, Mr. President".
More in Spanish: (El
Universal, http://www.eluniversal.com/nacional-y-politica/150826/cabello-si-es-necesario-cerrar-toda-la-frontera-lo-haremos; El Nacional; http://www.el-nacional.com/)
Colombia's Solicitor General
to sue Venezuela at ICC for crimes against humanity
Colombia's Solicitor General, Alejandro Ordóñez
has announced that he is collecting data to lodge a lawsuit against the
government of Venezuela at the International Criminal Court (ICC) because of
methods recently used by Venezuelan authorities to deport undocumented
Colombian immigrants. "We are
collecting data on those aggressions to bring them to the attention of the
International Criminal Court, because these are crimes against humanity,"
Ordóñez said. (El Universal, http://www.eluniversal.com/nacional-y-politica/150826/colombian-solicitor-general-to-sue-venezuela-at-icc)
Táchira’s Governor José Gregorio Vielma Mora
asked the Colombian government to repeal legislation that supports FOREX offices in Cucuta. He said
there are over 3,000 such offices in Cucuta which seek to attack the bolívar.
(Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=45230&idc=2)
UNASUR supports a bilateral
agreement on border crisis
Secretary General of the Union of South
American Nations (UNASUR), Ernesto Samper, says he has conveyed to presidents
Juan Manuel Santos (Colombia) and Nicolás Maduro (Venezuela) that the
organization is willing to help reach a bilateral agreement in relation to the
recent border crisis between the countries. Samper noted that UNASUR's
intervention would be subject to three conditions, namely "immediate suspension of deportations of
Colombians, creating a joint mechanism to fight organized crime, and seeking
economic mechanisms to tackle foreign exchange and price unbalances on the
border, which cause smuggling." (El Universal, http://www.eluniversal.com/nacional-y-politica/150826/unasur-supports-bilateral-agreement-on-border-crisis)
Amnesty International
concerned over HR at Venezuela-Colombia border
Human rights organization Amnesty International
says it is concerned about alleged human right violations on the
Colombia-Venezuela border. (El Universal, http://www.eluniversal.com/nacional-y-politica/150826/amnesty-international-concerned-over-hr-at-venezuela-colombia-border)
Opposition will invite outside observers "with or without" Elections council
authorization
Venezuela's opposition United Democratic
Conference (MUD) will invite outside observers to upcoming parliamentary
elections, "with or without"
the authorization of the National Elections Council. MUD international affairs
coordinator Timoteo Zambrano said "for obvious reasons we cannot provide
any more details." More in Spanish: (El Nacional; http://www.el-nacional.com/)
Guyana to appoint new
ambassador to Venezuela in next 4 weeks
Guyana plans to appoint a new ambassador to
Venezuela during the next four weeks amid diplomatic tensions over the disputed
Essequibo region, an official spokesperson said. The current envoy to
Venezuela, Geoffrey Da Silva, is in the process of returning to Georgetown
(Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2395139&CategoryId=10717;
El Universal, http://www.eluniversal.com/nacional-y-politica/150826/guyana-to-appoint-new-ambassador-to-venezuela-in-a-month)
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.
