November 17, 2015

Oil & Energy

 

Venezuela oil price tumbles to within dollar of 2015 low

Venezuela's weekly oil basket tumbled further below US$ 40 as oil prices around the world declined rapidly after the International Energy Administration revealed historically large amounts of oil in storage. 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 November 13 was US$ 37.23, down US$ 2.67 from the previous week's US$ 39.90. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2400021&CategoryId=10717; El Universal, http://www.eluniversal.com/economia/151113/venezuelan-oil-hits-usd-3723-per-barrel)

 

Maduro says he will meet Putin on oil prices next November 23

President Nicolás Maduro says he will meet with his Russian counterpart, Vladimir Putin, next November 23rd, to continue promoting higher oil prices. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/maduro-se-reunira-con-putin-el-proximo-23-de-novie.aspx#ixzz3reFQ4Onk)

 

US$ 1.31 billion invested to date in Guri hydroelectric plant

Representatives of Venezuela's state-run National Electric Corporation (CORPOELEC) and the Inter-American Development Bank (IDB) are reviewing electricity projects and civil engineering works aimed at streamlining the Simón Bolívar Hydroelectric Plant (Guri dam), located in Guri, southern Bolívar state, which would generate additional 705 megawatts (MW) for the National Grid (SEN). Heberto Montiel, of CORPOELEC, says this project has been in process since last year. The Inter-American Development Bank (IDB) allocated US$ 700 million, the Andean Development Corporation (CAF) provided US$ 380 million, and the Venezuelan government disbursed some US$ 230 million for the project, for a total US$ 1.31 billion. (El Universal, http://www.eluniversal.com/economia/151114/usd-131-billion-invested-in-guri-hydroelectric-plant)

 

 

Commodities

 

Venezuela hopes to collect US$ 413.2 million from gold mining

The Venezuelan government estimates that USD 542.6 million VEF would be collected from mining and basic industries in 2016, accounting for 0.2% of recurrent income and 0.2% of the planned national budget. These resources would be US$ 90.6 million from the iron industry; US$ 31.1 million from the exploitation of other minerals; US$ 420.1 million from gold exploitation-related operations and US$ 794.8 million from mining special sales, as per the 2016 currently under legislative discussion. (El Universal, http://www.eluniversal.com/economia/151114/venezuela-hopes-to-collect-usd-4132-million-from-gold-mining)

 

Agriculture is now less than 5% of GDP

Economist Jesús Casique, director of Capital Market Finance, says agriculture has been shrinking within Venezuela's GDP and is now less than 5%, as a result of exchange and price controls, expropriations and lack of legal and personal security. The Central Bank used to publish the size of agriculture within the GDP, but now includes it into other areas, which makes it difficult to determine its real size. More in Spanish:  (Ultima Hora Digital; http://ultimahoradigital.com/jesus-casique-sector-agricola-no-representa-ni-el-5-del-producto-interno-bruto/)

 

 

Economy & Finance

 

Oil Minister says debt restructuring "seems sensible"

Eulogio del Pino, Venezuela's Oil Minister and President of state oil company PDVSA says restructuring the company's debt "seems sensible in the light of the nation's FOREX cash flow limitations". The Síntesis Financiera analysis group says there will the margin for maneuvering around the foreign payment deficit will by narrower in 2016: "Collected oil exports will be around US$ 40 billion for a second year in a row, and restrictions undertaken in 2014 and 2015 to face the drop in exports have been very strong". PDVSA must pay US$ 8.1 billion in 2016-2017 for bond maturities. More in Spanish: (El Nacional; http://www.el-nacional.com/economia/Aseguran-canje-deuda-luce-sensato_0_739726158.html)

 

Central Bank data blackout deepens country risk perception

Since January last year, Venezuela's Central Bank has failed to make official information available on GDP, balance of payments, inflation, oil production, human development, poverty, pay scales, or scarcity - as it is legally bound to do. As a consequence, the nation's country risk is now similar to Ukraine's and worse than Greece and Argentina. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Ausencia-estadisticas-oficiales-BCV-aumenta_0_737926350.html)

 

Venezuela accuses entrepreneurs of promoting food shortages

The government here has again said that local officials are not the only ones who violate human rights, and told the United Nations that Venezuelan entrepreneurs are promoting the so-called economic war in the country. The accusation was made by Larry Devoe, Executive Secretary of the Venezuelan Human Rights Security Council during the Fourth Annual Forum on Business and Human Rights held in Geneva, Switzerland. Devoe said "(local) enterprises have deliberately hit the distribution and availability of food and personal use products, making people's access to basic goods difficult." (El Universal, http://www.eluniversal.com/nacional-y-politica/151116/venezuela-accuses-entrepreneurs-of-promoting-food-shortage)

 

Venezuela’s International Reserves drop around $702 million a month, according to official figures from the Venezuelan Central Bank (BCV). Financial firm ODH estimates Venezuelan International Reserves will close 2015 at $13.6 billion. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=46188&idc=1)

 

 

Politics and International Affairs

 

Venezuela’s regime is in a scared and ugly mood

President Nicolás Maduro admits that a parliamentary election on December 6th “could be the most difficult” test the government has faced since Hugo Chávez came to power following an election in 1998. He repeats that the “revolution” will win "como sea"—“by hook or by crook”:

• The government has gerrymandered voting districts to give more seats to rural areas where the PSUV is strong: six urban states with 52% of the electorate will elect just 64 deputies; the remaining 18 will elect 100.
• Maduro has declared a “state of exception” along the border with Colombia. In those areas, which will elect 19 legislators, campaigning is restricted, which hurts the opposition.
• Seven opposition leaders are banned from being candidates.
• The electoral authority has placed next to the opposition coalition on the electronic ballot a pro-regime splinter party with a similar name and logo. In one state, a candidate from that party has the same name as an opposition leader.
• The government has crippled the opposition media, for example by not renewing broadcasting licenses.
• The government has refused to allow election observers from the Organization of American States (OAS) or the European Union. In an unprecedented 18-page letter to Venezuela’s electoral authority, Luis Almagro, the OAS’s secretary-general, paints a devastating picture of the tilted field on which the opposition must play. Almagro, formerly a politician of Uruguay’s left-wing Broad Front, warns that the opposition lacks “equitable” conditions and that the ruling party abuses the resources of the state.

As the opposition surges in the polls, some analysts in Caracas think that it could win the three-fifths majority in the legislative assembly required to claw back powers from Maduro. The government tacitly recognizes the possibility of defeat: it recently pressured 13 supreme court justices to retire early, so that they can be replaced before the new assembly convenes in January. Maduro talks darkly of “governing with the people” if he loses. This suggests that he would seek to throttle and bypass the assembly. But everything indicates that “the people” are no longer with him. If he blocks peaceful change, he may ensure that frustration leads to violence. (The Economist, http://www.economist.com/news/americas/21678241-venezuelas-regime-scared-and-ugly-mood-hook-or-crook?frsc=dg%7Ca)

 

Former Dominican president to head UNASUR electoral mission in Venezuela

Former Dominican President Leonel Fernández will head the electoral mission of the Union of South American Nations (UNASUR) for the legislative elections to be held on December 6 in Venezuela. A source within the UNASUR General Secretariat said Fernández has been appointed as "special representative" of UNASUR. UNASUR's pro-tempore presidency, held by Uruguay, and Venezuela's National Electoral Council (CNE) signed an agreement to monitor the upcoming parliament election in Venezuela. (El Universal, http://www.eluniversal.com/nacional-y-politica/151116/former-dominican-president-to-head-unasur-electoral-mission-in-venezue)

 

Military controls key states in upcoming elections

National Bolivarian Armed Forces Operational Strategic Command, which carries out "Republic Plan" (supervising and guarding election procedures), will deploy 30,000 troops in areas where a "state of exception" has been decreed by President Nicolás Maduro. It is not known how many of these are members of the militia, according to Rocío San Miguel, director of the Control Ciudadano NGO. More in Spanish: (El Nacional, http://www.el-nacional.com/politica/GNB-control-clave-electoralmente_0_739126189.html)

 

Cabello claims Venezuelan pair held by U.S. for drugs were "kidnapped"
Two relatives of President Nicolas Maduro held in the United States on cocaine smuggling charges were "kidnapped," a senior member of the ruling Socialist Party said on Monday. In the first direct comment on the case from a high-ranking Venezuelan official, National Assembly president and party No. 2 Captain Diosdado Cabello also said it was an attempt by Washington to discredit the country's government right before a vote. "The aim was to hurt the Bolivarian revolution in the midst of an election," he said. (Reuters, http://www.reuters.com/article/2015/11/16/venezuela-usa-crime-idUSL1N13B1TD20151116#yq7mjD6axb5Fc8mS.97)

 

...and the opposition asks the National Assembly and Prosecutor General to investigate

Representatives of the opposition Democratic Unity (MUD) are asking the National Assembly and the Prosecutor General to open an investigation to find our "whether it is or is not true that Efraín Campo Flores and Franqui Francisco Flores De Freitas, "are related to the circle of power, why did they have diplomatic passports, who owns the airplane and who owns the yatch that the DEA has reported are part of a crime ring". Jesús Torrealba, Secretary General of Democratic Unity called it a "matter of national sovereignty" and said it "is a problem that goes beyond elections and could reveal the link between crime and power circles". More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/151117/mud-solicitara-a-la-an-y-fiscalia-que-abran-investigacion)

 

FM travels to Paris to support Venezuelans hit by attacks

Foreign Minister Delcy Rodríguez has traveled to Paris to assist and express the local government's solidarity to the victims and relatives of the Venezuelans hit by the attacks occurred in the French capital city. Rodríguez says she was informed about the health situation of Félix Salazar, who was treated at the Pitié Salpetriere Hospital in Paris, and she provided support to the relatives of Sven Silva, who is still missing. (El Universal, http://www.eluniversal.com/nacional-y-politica/151116/venezuelan-fm-travels-to-paris-to-support-venezuelans-hit-by-attacks)

 

 

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 10th, 2012

Economics & Finance

56% of reported foreign investment is non repatriated dividends

According to an UNCTAD (UN Commission for Trade and Development) report on foreign investment in 2012, Venezuela received foreign investments of U$D 5.3 billion. However, more than half the amount - some 56% is due to repressed earnings by multinational corporations that have not been able to repatriate dividends because they have not been authorized by the local currency board. Eduardo Porcarelli, executive director of the National Investment Promotion Council says "Venezuela has exchange controls and part of the earnings must be reinvested locally as they cannot be repatriated. It is difficult to ascertain which companies have an investment policy and which do so as they have no other choice." More in Spanish: (El Nacional, 07-10-2012; http://www.el-nacional.com/)

Price adjustments frozen in order to contain inflation

Executive Vice President Elias Jaua has conceded that the slowdown in inflation this year is the result of "a correct policy of regulation and subsidies" on the part of the government. Official anti-inflation strategy has been to freeze price adjustments, not only on regulated items, but also on other products that impact the National Consumer Price Index. More in Spanish: (El Universal, 07-10-2012; http://www.eluniversal.com/economia/120710/gobierno-contiene-la-inflacion-al-evitar-ajustes-de-precios)

Government spending is up  by 24% in real terms, according to information supplied by the Ministry of Finance for the first half of 2012. (El Universal, 07-09-2012; http://www.eluniversal.com/economia/120709/central-government-spending-leaps-24)

International reserves rose 12% in four days, from U$D 25.238 billion to U$D 28.393 billion, which increases the amount of currency disposable for imports and FONDEN programs in advance of October elections. More in Spanish: (El Universal, 07-10-2012; http://www.eluniversal.com/economia/120710/reservas-internacionales-suben-12-en-cuatro-dias)

Commodities

Chavez sees oil stabilizing at U$D100 per barrel

President Hugo Chavez says that "The price of oil is going to stabilize around U$D100 per barrel. Everything seems to indicate that," he told a news conference. International reserves were dropping, Chavez said, except in a few countries like Venezuela, Iran and Saudi Arabia. "And the needs are going to keep growing," he said. (Reuters, 07-09-2012; http://www.reuters.com/article/2012/07/09/us-venezuela-oil-idUSBRE8681CC20120709)

Venezuela’s export barrel recovered significantly, gaining U$D 6.70/bbl. or 7.77% to U$D 92.87/bbl., during the week that concludes today, informed the Oil and Mining Ministry in its Twitter account. The Venezuelan oil has thus put an end to eight consecutive weeks of losses during which it lost over 20% of its price. (Veneconomy, 07-09-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=31206&idc=4)

TOTAL aims to triple output at Venezuelan gas field

French oil major TOTAL said on Monday it would boost capacity later this year at the Yucal Placer gas field in Venezuela as part of a plan to triple its output by the end of 2014. The Yucal Placer field, a project whose owners also include Spanish energy company REPSOL YPF and Venezuela's INEPETROL and OTEPI, came on stream in 2004. Work on the new development phase of the field will start later this year to increase production to around 300 million cubic feet per day, or approximately 55,000 barrels of oil equivalent, by the end of 2014, TOTAL said. That is three times its current production. (Reuters, 07-09-2012; http://www.reuters.com/article/2012/07/09/total-venezuela-idUSL6E8I97L720120709)

Cement production dropping

Spokesmen for the National Cement Workers Union are warning that cement production - in an industry taken over by the government in 2008 - has dropped from 10,000 metric tons per year to 7.9 million tons, which is 20% less than production capacity. More in Spanish: (Ultimas Noticias, 07-10-2012; http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/alertan-sobre-caida-de-la-produccion-de-cemento.aspx)

International Trade

Paraguay sues to prevent Venezuela's entry into MERCOSUR

Paraguay has presented the MERCOSUR Permanent Tribunal with a suit against its suspension as a member of the trading group, as well as against Venezuela's incorporation without the approval of the Paraguayan Senate. A spokesman for the legal team says "Our action points to the violation of treaties such as the Asunción Agreement, the Ouro Preto and Ushuaia Protocols, as well as international law tenets on equal justice and non intervention." More in Spanish: (El Nacional, 07-10-2012; http://www.el-nacional.com/)

Uruguay's Vice President says MERCOSUR is "seriously wounded" by Venezuela's entry

Uruguayan Vice President Danilo Astori, who is responsible for his government's economic team, considers Venezuela's entry into MERCOSUR negative for the region, and says it was "agreed to at a summit held in Mendoza by the Presidents of Argentina, Brazil and Uruguay, without regard for current institutions". He calls the event the most serious institutional wound suffered by MERCOSUR in all its history. More in Spanish: (El Universal, 07-10-2012; http://www.eluniversal.com/nacional-y-politica/120710/dicen-que-ingreso-de-venezuela-a-mercosur-deja-grave-herida)

Venezuela in conflict with MERCOSUR doctrine

If Venezuela enters MERCOSUR as full member next July 31 it will have to change into a free-market economy instead of one controlled by the government. This is opposite of what Venezuela has been doing, but the Asunción Treaty  which establishes a Common Market between Argentina, Brazil, Paraguay and Uruguay requires "the free movement of goods, services and factors of production between countries through, inter alia, the elimination of customs duties and non-tariff restrictions on the movement of goods, and any other equivalent measures." (El Universal, 07-09-2012; http://www.eluniversal.com/economia/120709/venezuela-clashes-with-mercosur-doctrine; http://www.eluniversal.com/economia/120707/venezuela-four-years-to-adopt-mercosur-rules)

Chavez will travel to Brazil for MERCOSUR entry

President Hugo Chavez confirms he will travel to Río de Janeiro on July 31st for his country's incorporation into MERCOSUR. More in Spanish: (Últimas Noticias, 07-10-2012; http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/chavez-estara-en-brasil-para-ingreso-al-mercosur.aspx)

Logistics & Transport

Shippers report "widespread congestion" at local ports, apply surcharges

Shipping companies have notified Venezuelan clients of a surcharge for bringing cargo into the country due to "widespread congestion". A local client has received a message from a shipping company which says "We must advise you that due to the general situation at Venezuelan ports we will a Congestion Surcharge/Destination starting July 1st, 2012". The surcharge will be U$D 50 on 20 foot containers; U$D 100 on 40 containers and an equal amount for "high-cube" equipment. This is not an isolated case as there is "great concern among worldwide shippers due to enormous delays on vessels when they come to Venezuela", says a source close to maritime transportation. The increase in incoming vessels bearing imported food is one of the key causes for delays. "We have had ships waiting up to 30 days in order to dock. The government has become the main importer and does so without any planning", says another source. The situation has become further aggravated at Guanta, where - according to sources close to the terminal - a group of "pirates" assaulted cargo at a one of the ships at dock. More in Spanish: (El Universal, 07-08-2012; http://www.eluniversal.com/economia/120708/navieras-reportan-congestion-generalizada-en-puertos-locales)

Politics

Chavez will not debate Capriles or sign pre-election game rules

In his first campaign press conference President Chavez called any pre-election rules agreement "illegal", and refused to debate Henrique Capriles. He has announced he will start touring the country in his reelection bid. "That proposal for not co-opting all mass media, not using public resources, and respecting election results, would be a part of  a destabilizing strategy", he said. More in Spanish: (El Nacional, ; http://www.el-nacional.com/)

Chavez again claims he is "totally free" of cancer

This Monday President Hugo Chavez again declared himself fully recovered from cancer and ready to return to the streets for his re-election campaign ahead of an October vote. "Free, free, totally free," an ebullient Chavez told reporters when asked if he was free of the disease that struck a year ago. (Reuters, 07-09-2012; http://www.reuters.com/article/2012/07/10/us-venezuela-election-chavez-idUSBRE8681CQ20120710; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=535359&CategoryId=10718; The Washington Post, http://www.washingtonpost.com/world/the_americas/venezuelas-chavez-says-hes-beaten-cancer-recuperation-wont-affect-re-election-bid/2012/07/09/gJQA72Y6YW_story.html; Fox News, http://www.foxnews.com/world/2012/07/09/chavez-says-been-completely-cancer-free/)

DATANALISIS: Pro Chavez voting intention at 57.22%

The latest survey by polling firm DATANALISIS, carried out between May 29 and June 28, 2012, shows voting intention in favor of Hugo Chavez Frias at 57.22%. A pro government television analyst has said that -according to the survey- if elections took place on Sunday, Chavez would have 47% and his nearest contender Henrique Capriles Randonski 30%, with undecided voters at 23%. (AVN, 07-09-2012; http://www.avn.info.ve/node/121454)

Chavez congratulates Mexico’s Peña Nieto on election victory

President Hugo Chavez has congratulated Mexico’s president-elect on his victory in the July 1 balloting and expressed his willingness to deepen bilateral ties, according to a statement by the Venezuelan Foreign Ministry. (Latin American Herald Tribune, 07-07-2012; http://www.laht.com/article.asp?ArticleId=534261&CategoryId=10717)

May 18th, 2012

Economics & Finance

Venezuela´s economy grew 5.6% in the first quarter 2012, according to a joint announcement by Jorge Giordani, Minister for Planning and Finance, and Central Bank President Nelson Merentes. Giordani says this shows growth for six consecutive semesters and the highest level in the last 15 quarter and stressed that the growth estimate in this year's budget was 5%. Petroleum industry growth was pegged at 2.2%. More in Spanish: (AVN, 05-18-2012; http://www.avn.info.ve/contenido/economía-venezolana-creció-56-primer-trimestre-2012; http://www.avn.info.ve/contenido/crecimiento-económico-actividad-petrolera-se-ubicó-25; El Universal, http://www.eluniversal.com/economia/120518/economia-recupera-lo-perdido-en-la-recesion-y-crece-56; http://www.eluniversal.com/economia/120518/pib-petrolero-alcanzo-un-crecimiento-de-22-en-primer-trimestre)

Imports increased 48,5% during Q1 2012, according to a Central Bank report, up to U$D 13.190 billion from U$D 8.883 billion in Q1 2011. More in Spanish: (AVN, 05-18-2012; http://www.avn.info.ve/contenido/importaciones-se-incrementaron-485-al-cierre-del-primer-trimestre)

Private construction drops for nine quarters in a row

Construction in Venezuela grew by 29.6% in Q1 2012 but this was entirely due to public investment, as private activity continued to recede. Central Bank figures show private sector construction contracted by 10.6% and has been dropping for nine consecutive quarters. More in Spanish (El Universal, 05-18-2012; http://www.eluniversal.com/economia/120518/nueve-trimestres-de-caida-lleva-la-construccion-privada)

Nation's debts increased 22.5% in the first quarter of 2012

Venezuela's debts as a nation increased by 22.5% and closed Q1 2012 at U$D 93.3 billion. The increase is due to new loans from China, new bonds issued by the Government and PDVSA, renegotiations with expropriated companies and market variations. More in  Spanish: (El Nacional, 05-18-2012; http://www.el-nacional.com/)

International reserves at lowest point this year

International reserves reached their lowest point this year and closed at U$D 25.651 according to Central Bank official figures. The drop in reserves has increased by constant transfers to the National Development Fund (FONDEN). More in Spanish: (El Mundo, 05-18-2012, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/reservas-internacionales-cierran-en-su-nivel-mas-b.aspx)

VEB 5.30 per U$ dollar exchange rate gains ground

Financial authorities have set a new strategy: On the one hand, they will increase the amount of imports made with the VEB 5.30 per US dollar exchange rate used by the System for Foreign Currency Denominated Securities Transactions (SITME), a mechanism created by the Central Bank for companies that do not receive US dollars through the Foreign Exchange Board (CADIVI). On the other hand, they have cut more highly subsidized imports channeled through CADIVI at an exchange rate of VEB 4.30 per US dollar.  As transactions through SITME gain ground there is a gradual devaluation of the Venezuelan currency. Official data show that CADIVI authorized U$D 4.9 billion for imports, the lowest amount in the last six years and a 9% decline compared to the same period in 2011. (El Universal, 05-16-2012; http://www.eluniversal.com/economia/120516/veb-530-per-us-dollar-gains-ground-in-the-economy)

Over-budget loan appropriations soar 103.5% in a year

The government estimated FY2012 at VEB 297.8 billion (U$D 69.25 billion), but this amount has not been enough to meet the financial requirements of government agencies and state-run companies, thus leading the government to request additional loans. The National Assembly has approved extraordinary appropriations amounting to U$D 6.63 billion - at the official exchange rate of VEB 4.30 per US dollar - to date this year. This exceeds by 103.5% appropriations authorized for the same period in 2011, which were U$D 3.25 billion. (El Universal, 05-16-2012; http://www.eluniversal.com/economia/120516/extra-budget-loans-soar-1035-in-a-year)

Small and medium business endangered

The impact of new regulations imposed by the Government on Small and Medium Enterprises (SMEs) could result in closure or disinvestment of these enterprises, according to an alert issued by the National Council of Trade and Services (CONSECOMERCIO). The new Labor Law (LOT), along with recent minimum wage increase and prices regulated by the SUNDECOP seriously compromise the future of SMEs operating in trade and services throughout the country. More in Spanish: (Tal Cual, 05-16-2012; http://www.talcualdigital.com/index.html)

Overall business climate index for Latin America recovers, except for Venezuela

According to the quarterly study by Brazil's Getulio Vargas Foundation and the University of Munich, which consulted 149 experts from 18 countries, the Latin American Economic Climate Index was up to 5.2 points in April, its best level since July 2011. Venezuela went from 4.5 to 3.4 points. (Veneconomy, 05-16-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=30528&idc=2; El Universal, 05-16-2012; http://www.eluniversal.com/economia/120516/brazilian-foundation-venezuelas-business-climate-deteriorates)

Commodities

Iron, steel and aluminum production falling

Mining has dropped 3.2% in Q1 2012, within an apparently growing and expanding economy, as compared to last year. In his report on the economy, Planning and Finance Minister Jorge Giordani admitted a drop in production in iron, steel and aluminum industries concentrated in the Guayana region. More in Spanish: (El Universal, 05-18-2012; http://www.eluniversal.com/economia/120518/se-contrae-la-produccion-de-hierro-acero-y-aluminio)

Aluminum industry paralyzed

For the first time in over three decades, almost all of the domestic industry in Guyana aluminum processing is paralyzed, with some companies in "technical closure" having sent their workers home and others trying to "stretch" inventory - and all because of the almost total lack of aluminum due to the crisis VENALUM and ALCASA. More in Spanish: (Tal Cual; 05-16-2012; http://www.talcualdigital.com/index.html)

Stalled mining in Guyana

Canadian, Russian, Iranian and Chinese have landed in the southern state of Bolivar interested in gold mining, metal largest southern municipalities of the entity and of which live 90% of the population.

Two months after the expiry of the extension of the Order of Strength, and Value Range number 8413, which restricts the production and sale of gold to the State, the industry remains stagnant with no prospect of recovery. Rusoro Mining companies such as Promotora Minera de Guayana, are administered by the state after the expiration Minerven extension to form joint ventures. More in Spanish: (El Nacional, 05-16-2012; http://www.el-nacional.com/)

International Trade

Trade with Colombia rises by 18%

The exchange of goods and services between Colombia and Venezuela grew 18% in the first quarter, compared with the same period in 2011. Luis Alberto Russián, chief executive of the Chamber of Venezuelan-Colombian Integration, said that bilateral trade closed the first 3 months at U$D 564 million: U$D 449 million in Colombian imports and U$D 115 million in Venezuelan exports, mostly fuel from the El Vigía plant in Mérida state. The trade balance for the country shows a deficit of U$D 334 million. More in Spanish: (El Nacional, 05-17-2012; http://www.el-nacional.com/) and Ultimas Noticias, 05-17-2012; http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/colombia-recibio-14,6-millones-de-litros-de-combus.aspx)

Politics

In Venezuela, top diplomat steps into the void while cancer forces lower profile for Chavez

After nearly a year of cancer treatment that has forced President Hugo Chavez to step back from the spotlight, a burly former bus driver with a dark mustache and affable smile is emerging more than ever as the president’s stand-in. In recent weeks, Foreign Minister Nicolas Maduro has led news conferences, touted a new labor law and criticized the U.S. government with gusto. He even rallied a crowd of supporters while wearing a track suit emblazoned with the yellow, blue and red of Venezuela’s flag, just like one Chavez sometimes wears. (The Washington Post, 05-16-2012; http://www.washingtonpost.com/world/the_americas/in-venezuela-top-diplomat-steps-into-the-void-while-cancer-forces-lower-profile-for-chavez/2012/05/16/gIQAU7YBUU_story.html)

Brazil is following Chavez illness closely, according to a statement by Brazilian Foreign Minister Brasil Antonio Patriota, who wished the Venezuelan President a rapid recovery. More in Spanish: (Tal Cual, 05-18-2012; http://www.talcualdigital.com/index.html)





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.