International
Trade
Venezuelan exports drop the most within Latin America
Latin
America’s exports shrank 9% during Q1 2016, according to the Inter-American
Development Bank (IABD), which reports the strongest contraction in exports
took place on oil producing nations such as Venezuela, Ecuador and Colombia.
More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Venezuela-paises-mayor-contraccion-exportacion_0_857914349.html)
Logistics
& Transport
International flights to and from Venezuela have dropped
almost 70% since 2013
Humberto
Figuera, Executive President of Venezuela’s Airline Association reports that
international flights to and from Venezuela have dropped 70% since 2013, from
370 per week to 115. The government owes international airlines servicing
Venezuela are owed almost US$ 3.8 billion in ticket sales at the official
exchange rate. At the same time, Dante Salvatorelli, National Director of
Venezuela’s Travel and Tourism Agency Association, warns Venezuela may become
isolated from international air travel. His remarks came after LATAM and
LUFTHANSA announced they are temporarily suspending service to this country. More in Spanish: (Ultimas
Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/la-oferta-de-vuelos-internacionales-ha-caido-casi-.aspx#ixzz4AJy6o2d5; Notitarde; http://www.notitarde.com/Economia/Temen-que-Venezuela-quede-aislada-internacionalmente-2688230/2016/05/31/986106/; El Nacional, http://www.el-nacional.com/economia/Avavit-Tememos-quedar-aislados-Venezuela_0_857914235.html)
Oil & Energy
Oil tankers in limbo as Venezuela's PDVSA fails to pay
BP
Four
tankers carrying over 2 million barrels of U.S. crude are stuck at sea and
cannot discharge at a Caribbean terminal because Venezuela's PDVSA has not yet
paid supplier BP Plc, according to two sources and Thomson Reuters vessel
tracking data. The cargoes are part of a tender Petroleos de Venezuela awarded
in March to BP and China Oil. The deal was to import some 8 million barrels of
West Texas Intermediate (WTI) crude so Venezuela could dilute its extra heavy
crudes and feed its Caribbean refineries. While three cargoes for this tender
were delivered in April, seven other vessels, including BP's four hired ones,
are waiting to discharge, leaving up to 3.85 million barrels of WTI in limbo.
(Reuters, http://www.reuters.com/article/us-oil-pdvsa-bp-idUSKCN0YM2OX)
Commodities
POLAR to restart beer production in July
The
POLAR group of companies says it will resume beer production in July after
halting operations in April for lack of malted barley amid chronic shortages here.
POLAR said it has been unable to obtain dollars for imports through the
socialist government's currency controls, which economists widely describe as
the cause of shortages of consumer goods ranging from vital medicines to staple
food products. The company, a frequent target of criticism by President Nicolas
Maduro, said it had obtained a US$ 35 million loan from Spanish bank BBVA that
will allow it to import barley and hops needed for brewing. (Reuters, http://www.reuters.com/article/venezuela-polar-idUSL1N18T1EQ;
and more in Spanish: (Notitarde; http://www.notitarde.com/Economia/Polar-reiniciara-su-produccion-de-malta-y-cerveza-el-proximo-mes-2689093/2016/06/02/986294/;
http://www.notitarde.com/Economia/Polar-recibe-credito-de-BBVA-para-reactivar-produccion-de-cerveza/2016/06/01/986170/;
Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/polar-recibe-prestamo-por-35-millones-para-reactiv.aspx)
Economy & Finance
Venezuelan credit dashboard: short-term default
concerns ease
Venezuela,
which has the largest crude reserves on the planet, has defied predictions of
default since the oil collapse started in 2014 and analysts are split as to how
long the nation of 30 million can hold out. The government and state oil
company Petroleos de Venezuela SA have to pay a mere US$ 45 million in
principal and interest on debt in June and only US$ 70 million in July. A
bigger test comes in August, when the country has to pay US$ 1.2 billion (that
amount falls to US$ 726 million when dual-currency, government TICC bonds
denominated in dollars and payable in bolivars are excluded). The nation’s international
reserves continued to tumble in May, falling US$ 712 million to a 13-year low
of US$ 12 billion. Reserves declined US$ 523 million in April and US$ 331
million in March, according to data compiled by Bloomberg. The nation also cut its gold reserves by 16%
in the first quarter, according to International Monetary Fund data. (Bloomberg,
http://www.bloomberg.com/news/articles/2016-06-01/venezuelan-credit-dashboard-short-term-default-concerns-ease)
Venezuela’s currency has devalued 60% in 3 months
Analysts
report that a 60% devaluation over the past three months is the result of a
government strategy to adjust the FOREX rate to real terms, with a high
inflation. The “floating” official
rate DICOM has been steadily increasing and now stands at VEB 543.30/US$ 1.
More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Moneda-venezolana-devalua-realidad-economica_0_857914389.html)
Politics and International Affairs
OAS assembly votes to back talks between government
and opposition in Venezuela
Following
a heated 12-hour session, the 34-member nation Permanent Council of the
Organization of American States has unanimously offered to help Venezuela “identify, through common agreement, a course
of action that promotes seeking solutions to its situation through an open and
inclusive dialogue between the government, other Constitutional authorities and
all of the nation’s political and social stakeholders in order to preserve
Venezuela’s peace and security with full respect for its sovereignty” and
its support for “the different
initiatives that seek national dialogue that in a timely, prompt and effective
manner, abiding by Constitution and fully respecting human rights, lead to
resolving differences and consolidating representative democracy”. The
resolution does not reject a request by OAS Secretary General Luis Almagro for
a Permanent Council meeting of member states to determine the need to apply the
Hemispheric Democratic Charter in the case of Venezuela. At the same time, the
OAS resolution supports efforts by former Presidents José Luis Rodríguez
Zapatero (Spain), Leonel Fernandez (Dominican Republic) and Martín Torrijos
(Panama), seeking to establish talks between the Maduro regime and the
opposition to “find alternatives to
promote Venezuela’s political stability, social development and economic
recovery”. President Nicolas Maduro said yesterday that his regime will
continue to take part in talks begun in the Dominican Republic under the
auspices of the three former presidents. Henry Ramos Allup, President of
Venezuela’s National Assembly says that “the
mere fact that the OAS is debating Venezuela’s horrific situation is a defeat
which strips the Maduro regime bare to the world”. Venezuela’s opposition
coalition has asked the OAS to apply the Democratic Charter as it presses local
election authorities to move forward on a recall referendum to oust President
Nicolas Maduro. After the OAS meeting, President Nicolas Maduro called for
nationwide demonstrations in Venezuela against “Secretary General Almagro and against imperialism”, and said “if some day we have to take up a rifle we
will do so” to defend Venezuela’s sovereignty. Foreign Minister Delcy
Rodríguez echoed his words and claimed a possible intervention by the OAS and
the US is close at hand. (Latin American Herald Tribune: http://www.laht.com/article.asp?ArticleId=2413353&CategoryId=10718;
http://www.laht.com/article.asp?ArticleId=2413391&CategoryId=10717;
http://www.laht.com/article.asp?ArticleId=2413385&CategoryId=10717;
Reuters, http://www.reuters.com/article/us-venezuela-politics-oas-idUSKCN0YN5NT; and
more in Spanish: CNN Español: http://cnnespanol.cnn.com/2016/06/01/la-oea-discute-dos-propuestas-para-una-resolucion-de-ayuda-a-venezuela/#0;
Ultimas Noticias: http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/rodriguez-venezuela-logro-victoria-en-la-oea.aspx#ixzz4AOyDttHM;
El Universal: http://www.eluniversal.com/noticias/politica/maduro-algun-dia-nos-toca-tomar-fusil-tomaremos_312917;
http://www.eluniversal.com/noticias/politica/delcy-rodriguez-avecina-una-intervencion-armada-pais_312872)
OAS Secretary General calls special meeting of OAS
Council on Venezuela
OAS Secretary
General Luis Almagro has published a 132-page report citing Article 20 of the
Charter to call for a Permanent Council meeting of member states to determine
whether there has been an "unconstitutional
alteration of the constitutional regime that seriously impairs the democratic
order" in Venezuela. Venezuelan opposition politicians had urged the
OAS to call the meeting. The move could lead to Venezuela being suspended from
the OAS. "The secretary general
considers that the institutional crisis in Venezuela demands immediate changes
to the Executive power," a statement by Almagro read. He thus becomes
the first OAS secretary general to invoke the Democratic Charter against a
member state contrary to the will of its government. The full report was delivered
to the Chairman of the OAS Permanent Council. The meeting is expected to be
held sometime between the 10 and 20 of June and is expected to coincide with
the meeting of the OAS General Assembly in the Dominican Republic between 13
and 15 June. In his report, Almagro called on Venezuela to carry out the
requested recall referendum during 2016, free political prisoners, provide
security for its population, respect the constitution and separation of powers,
fight corruption and incorporate the UN Commissioner for Human Rights into a
recently established Truth Commission”. He also asked the Maduro regime and the
National Assembly to work together to immediately solve basic human rights
violations against the people, such as access to food and health services. Maduro rejected Almagro’s report and told the OAS
Secretary General to put the Hemispheric Democratic Charter to a “better use” by “rolling it up in a thin tube….and sticking it up wherever you can” (BBC, http://www.bbc.com/news/world-latin-america-36416116;
and more in Spanish: El Nacional: http://www.el-nacional.com/politica/Maduro-Almagro-Metase-democratica-quepa_0_857914351.html)
Ramos Allup chides Argentina’s Macri for about-face on
Venezuela at OAS Assembly
Henry
Ramos Allup, President of Venezuela’s National Assembly, has lambasted
Argentina’s President Mauricio Macri for reneging on a campaign promise to
apply the Democratic Charter in the case of Venezuela. In what Ramos terms an
about face, Macri’s Foreign Minister Susana Malcorra – a candidate to be
elected UN Secretary General – now says Argentina’s priority is to promote
dialogue, and that “there is no way to
solve a nation’s problem by importing an outside solution”. Ramos called
the Argentine government’s position hypocritical and wrote that “at least Cristina Kirchner was sincere”
in her support for the chavista regime. (El
Nuevo Herald: http://www.elnuevoherald.com/noticias/mundo/america-latina/venezuela-es/article81273732.html#storylink=cpy)
Maduro threatens to sue National Assembly officials
for requesting application of the Democratic Charter
President
Nicolas Maduro says he will sue the officials of the National Assembly, headed
by Henry Ramos Allup, for usurping his authority after the legislature voted to
ask the OAS to apply the Hemispheric Democratic Charter on Venezuela. He
accused Ramos of calling “for foreign
intervention into Venezuela’s international affairs and has tried to undertake
the nation’s foreign affairs which are constitutionally exclusive to the head
of state, who is called Nicolas Maduro”.
He called for a broadcast trial for what he called usurping powers as
well as “treason”, and said that
Ramos’ initiative is “criminal”. More in Spanish: (Infolatam, http://www.infolatam.com/2016/05/31/maduro-demandara-a-parlamento-venezolano-por-pedir-activar-carta-democratica/)
Almagro says OAS and other former Presidents should
join UNASUR efforts on Venezuela
OAS
Secretary General Luis Almagro has suggested that the organization he heads, as
well as some other heads of state, should be involved in the talks between the
Maduro regime and his opponents, that are being promoted by the Union of South
American Nations (UNASUR) and the former presidents of Spain, the Dominican
Republic and Panama. Almagro
mentioned former Spanish presidents José María Aznar and Felipe González,
Uruguay’s Luis Alberto Lacalle, Colombia’s Andrés Pastrana, Chile’s Sebastián
Piñera, and Bolivia’s Jorge Quiroga. He suggests that “two or three” of these former heads of
state and the OAS join in the efforts already begun by UNASUR. More in Spanish:
(Infolatam: http://www.infolatam.com/2016/05/31/almagro-pide-sumar-a-la-oea-y-mas-expresidentes-a-dialogo-unasur-en-venezuela/)
IDEA backs OAS Almagro's move on Venezuela
A
number of Latin American ex-presidents who signed a statement by the Democratic
Initiative of Spain and the Americas (IDEA) have reiterated their concern “over the disruption of the constitutional
and democratic order (in Venezuela) by the Executive Power and the Supreme
Tribunal of Justice (TSJ) when disregarding a National Assembly (AN) that has
been legally entrusted with the people’s sovereignty.” The former Heads of
State urged the Electoral Power to observe the Constitution and set the conditions
for a recall vote against the mandate of President Nicolas Maduro this year, a
move that may help give peaceful, democratic, constitutional and electoral
solutions to the serious institutional, political and humanitarian crises
facing the country. They also asked the government “to release political prisoners, guarantee the people’s right to take
part democratically in referendums, and respect the decisions of the National
Assembly.” (El
Universal, http://www.eluniversal.com/noticias/daily-news/idea-backs-oas-almagros-move-venezuela_312834)
Cardinal Urosa urges Maduro to revoke state of
emergency and enter talks
Caracas
Archbishop Cardinal Jorge Urosa has publicly asked President Nicolas Maduro to
revoke the state of emergency and enter talks with the opposition, He said the
emergency powers Maduro invoked last month “do
nothing to solve the problems of the Venezuelan people” and “make the political, social and economic
situation worse”. More in Spanish: (El
Universal, http://www.eluniversal.com/noticias/politica/urosa-pidio-maduro-derogar-estado-excepcion-recurrir-dialogo_312927)
IAHRC fears state of emergency threatens democracy
The
Inter American Human Rights Commission says it is concerned that the state of
emergency decreed by Venezuelan President Nicolás Maduro can “endanger respect for the rule of law and the
independence of powers”, “grants the
executive power discretionary powers” and “through broad and ambiguous wording” can open the door to abuses.
More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/cidh-teme-que-estado-excepcion-atente-contra-democracia_312949)
Drive to oust Venezuela's Maduro returns old foe to
front line
Sweating,
hoarse and jostled at every turn, opposition leader Henrique Capriles is back
pounding Venezuela's streets, exhorting crowds and fuming about corruption and
shortages. Capriles' profile faded after his failed presidential runs in 2012
and 2013 but the Miranda state governor is again on the political front line,
this time driving an opposition push for a referendum to remove President
Nicolas Maduro. "The only way to fix
Venezuela's crisis is asking Venezuelans," he told Reuters after a day
campaigning in the pressure-pot nation reeling from economic hardships,
protests and viciously polarized politics. (Reuters, http://www.reuters.com/article/us-venezuela-politics-capriles-idUSKCN0YN4W2)
National Assembly President warns Supreme Tribunal may
block recall vote
National
Assembly President Henry Ramos Allup says he has information that the
Venezuela’s Supreme Tribunal will issue a sentence against the recall
referendum that is being requested to revoke President Nicolas Maduro’s term of
office this year. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/ramos-allup-inminente-sentencia-del-tsj-para-que-haya-revocatorio_312682;
El Nacional, http://www.el-nacional.com/politica/Ramos-Allup-TSJ-maniobra-revocatorio_0_857914450.html)
Opposition to meet with election officials on Thursday
about recall
A
commission of opposition lawmakers who visited the offices of Venezuela’s
National Electoral Council, or CNE, to press for a recall referendum against
socialist President Nicolas Maduro has been granted a meeting with election
officials on Thursday. “We’ve been
officially informed by the National Electoral Council that a meeting will be
held tomorrow with the Democratic Unity coalition (MUD) to review the report”
on the signature-gathering stage, lawmaker Enrique Marquez said. Marquez, who
is the first vice president of the opposition-controlled National Assembly,
visited the CNE along with seven other anti-government lawmakers to demand that
the electoral authority’s president, Tibisay Lucena, “remove the barriers preventing the recall referendum from being held
this year.” (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2413464&CategoryId=10717)
Spain’s Foreign Minister says “lawfulness and Maduro are contradictory terms”
Spain’s
Foreign Minister José Manuel García-Margallo says “lawfulness and Maduro are contradictory terms”, after it was
reported that Venezuela’s President will take legal action against Spain to put
a stop to a “psychological warfare
campaign” he claims is being waged against his country. García-Margallo
said is “not much” worried over any
action and added that if Maduro “wants to
apply lawfulness the best thing he can do is apply it in his country, admitting
his citizens constitutional right to call for a recall referendum”. More in
Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/canciller-espanol-legalidad-maduro-son-conceptos-contradictorios_312905)
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.
