May 24, 2016

Oil & Energy

PDVSA eyes US$ 2.5 billion debt issue to pay service firms

State oil company PDVSA is preparing to issue US$ 2.5 billion in promissory notes to settle unpaid bills to services companies, according to industry sources and documents seen by Reuters. PDVSA has already issued at least US$ 310 million in debt securities as part of a broader effort to prevent crucial oil services providers from downing their tools for lack of payment, Reuters reported this month. The company has hired little-known, Miami-based financial services firm CP Capital to structure 3-year notes with a one-year grace period that will have the same status as PDVSA's global bonds, according to documents obtained by Reuters. The operation creates additional financial obligations for a company already facing doubts about its capacity to meet ballooning bond payments amid low oil prices, a collapsing socialist economy, and chronic shortages reminiscent of the Soviet bloc. (Reuters, http://www.reuters.com/article/venezuela-economy-idUSL2N18K0YM)

 

Venezuela oil price up for 6^th straight week

The price Venezuela receives for its mix of medium and heavy oil rose for a sixth consecutive week as oil prices around the world continued strengthening. According to figures released by the Ministry of Petroleum and Mining, the average price of Venezuelan crude sold by Petroleos de Venezuela S.A. (PDVSA) during the week ending May 20 was US$ 37.87, up US $2.59 from the previous week's US$ 35.28.  According to Venezuelan government figures, the average price in 2016 for Venezuela's mix of heavy and medium crude is now US$ 28.70 for the year to date. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2412705&CategoryId=10717)

 

Maduro to continue PETROCARIBE’s cooperation with Jamaica

President Nicolas Maduro met with Jamaican Prime Minister Andrew Michael Holness in the island’s capital city, Kingston. There, Maduro reiterated his government would continue funding that country through multi-state oil alliance PETROCARIBE. (El Universal, http://www.eluniversal.com/noticias/daily-news/venezuelas-maduro-continue-petrocaribe-cooperation-with-jamaica_311377)

 

PDVSA reportedly is selling assets and pulling out of Argentina

An Argentine group called GMM has made an offer to buy of PETROLERA DEL CONO SUD, a PDVSA subsidiary which owns 95 service stations and storage tanks at Dock Sud. Local subsidiary denied the sale, but it is reported it has funding available only through the end of this year. More in Spanish: (La Nación: http://www.el-nacional.com/GDA/Pdvsa-vende-activos-va-Argentina_0_853114957.html)

 

 

Commodities

 

Coca Cola production halts for lack of sugar

The Venezuelan bottler of Coca-Cola has halted production of sugar-sweetened beverage due to a lack of sugar. Production of sugar-sweetened drinks has stopped, but output of diet drinks such as Coca-Cola light and other zero-sugar beverages continued. (Reuters, http://www.reuters.com/article/us-coca-cola-venezuela-idUSKCN0YE2Q6; Bloomberg, http://www.bloomberg.com/news/videos/2016-05-23/coca-cola-to-halt-production-in-venezuela; http://www.bloomberg.com/news/articles/2016-05-23/coca-cola-to-stop-production-of-sweetened-beverages-in-venezuela; El Universal, http://www.eluniversal.com/noticias/daily-news/coca-cola-company-warns-against-possible-production-halt-venezuela_311397)

 

Food shortages take toll on Venezuelans' diet, cattle slaughtered, people scrounge in garbage

With prolonged shortages of basic foods, Venezuelans have been forced to shift their diets to whatever they can find. And what they can find is not necessarily healthy. Milk, meat and beans – the main sources of protein in the Venezuelan diet – are hard to find or sold at exorbitant prices, and many are filling up on empty carbs from pasta, rice and the traditional arepa cornmeal cake. A study revealed last month by Venezuela’s top three universities showed that 12% of those polled said they were eating less than three meals a day.  “And those who do have access to three meals have seen a deterioration in the quality of their diet,” said Marianella Herrera-Cuenca, of the Bengoa Foundation, an NGO dedicated to promoting nutrition. Children and the elderly are hardest hit. Investigators from the Bengoa Foundation said a sampling of 4,000 school-aged children showed 30% were malnourished and that school absences were on the rise.  Cruces, the nutritionist, predicted that future generations of Venezuelans will be shorter and wider because of the low quality of the food they are consuming. “The lack of calcium will stunt growth and excess carbohydrates will make them fat,” he said. Critics of the socialist government of Nicolas Maduro say food production collapsed in the oil-reliant country due to a mix of the expropriation of farmland and agro-industrial enterprises and strict price controls that made importing food cheaper than producing it locally. But a byzantine currency control system and plummeting oil prices have slashed imports of raw materials and food products. Opposition Congressman Elías Matta has reported cattle has been stolen and found slaughtered and quartered by hungry inhabitants of Zulia state, he also points to long lines seeking food at markets and other establishments, as well as people scrounging for food in garbage dumps near restaurants and shopping centers, “while indolent authorities are only concerned with clinging to power at any cost”. (The Guardian: http://www.theguardian.com/world/2016/may/24/venezuela-crisis-basic-food-shortages; and more in Spanish: El Impulso: http://www.elimpulso.com/noticias/nacionales/elias-matta-matanza-de-reses-en-el-zulia-es-muestra-del-hambre-que-pasa-venezuela)

 

 

Economy & Finance

 

Venezuela’s economy shrank 10.8% in Q1 2016

A source close to the Finance and Banking Ministry reports Venezuela’s economic activity dropped 10.8% during Q1 2016, down from the same period in 2015. Manufacturing, trade and oil register a severe contraction, which point to unheard of results by the year’s end. The same source reports demand dropped 6.7% and investment shrank 15.6% during the same period this year. Trade and Investment Minister Jesus Faria says the greatest hurdles for the economy are “in the exchange area and the lack of FOREX”, but claims the worst part is over and “there are signs that a fundamental improvement is coming”. More in Spanish: (El Nacional: http://www.el-nacional.com/economia/Economia-cayo-primer-trimestre_0_853114954.html)

 

Supreme Tribunal says Maduro's state of emergency is “constitutional”

The Venezuelan Supreme Court has ruled that a decree issued by President Nicolas Maduro last week declaring a state of emergency is constitutional. The decree gives Maduro extra powers to deal with Venezuela's economic crisis, including the right to impose tougher security measures. The opposition-controlled parliament rejected the decree, but the Supreme Court, which rarely rules against the government, immediately said the decree was justifiable.  The court upheld the decree because of what it called "the extraordinary social, economic, political, natural and ecological circumstances that are gravely affecting the national economy." In measures published in the government gazette on Monday, the armed forces and local committees now have powers to distribute and sell food. Authorities will also be allowed to cut the working week in the private sector, as they have done in the public sector, to conserve electricity. The new measures also allow the government to take control of basic goods or services, which analysts say opens the way to the expropriation of companies. (BBC News: http://www.bbc.com/news/world-latin-america-36339721)

 

Dominican Republic’s Fernandez to coordinate talks on Venezuela’s economy

Spain’s former President José Luis Rodríguez Zapatero announced that a task force from the Union of South American Nations (UNASUR) headed by Leonel Fernandez, former President of the Dominican Republic, will work to “reactivate economic growth” in Venezuela as part of their efforts to seek political talks between the Maduro regime and its opponents. Fernandez said there would be talks “between the government, representatives of the Democratic Unity coalition, economists and the private sector” More in Spanish: (Notitarde, http://www.notitarde.com/Economia/Dialogo-para-reactivar-economia-venezolana-sera-coordinado-por-Leonel-Fernandez-/2016/05/19/976264/; El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/subcomitiva-de-unasur-tratara-asuntos-economicos-d.aspx#ixzz49C61KfOQ; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/leonel-fernandez-abordara-situacion-economica-de-v.aspx)

 

Bridgestone sells Venezuela business

Tire manufacturer BRIDGESTONE has announced it is selling its business in Venezuela after over 60 years operating here. It has sold to the CORIMON local business group. More in Spanish: (Ultimas Noticias: http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/bridgestone-vendera-sus-negocios-en-venezuela.aspx#ixzz49ZBCsCHF; Notitarde, http://www.notitarde.com/Economia/Grupo-Corimon-compra-activos-de-Bridgestone-2681698/2016/05/23/979934/; El Universal, http://www.eluniversal.com/noticias/economia/bridgestone-vende-filial-venezuela-grupo-corimon_311472)

 

 

Politics and International Affairs

 

Venezuela holds war games as opposition demands recall vote

Venezuela held the biggest military exercise in its history this weekend, citing threats to national security, as the opposition pushes for a recall referendum on President Nicolas Maduro. While the streets of Caracas were mostly calm, state television and government news websites showed of deployments across the country, with tanks being unloaded from landing craft, troops setting up tents and armored vehicles on the move. Maduro announced the drills a week ago, a day after pledging to prolong his government’s special emergency powers as the country battles its worst recession in decades. He sought to deflect blame for those ills, saying high crime and crippling economic woes are part of an “unconventional war” being waged against Venezuela. (Bloomberg, http://www.bloomberg.com/news/articles/2016-05-21/venezuela-holds-war-games-as-opposition-demands-recall-vote)

 

….and Maduro claims U.S. 'dreams' of dividing loyal military

The United States "dreams of dividing" a "Chavista" military fiercely loyal to Venezuela's socialist government, president Nicolas Maduro said on Saturday, as the military comes under scrutiny in the crisis-gripped nation. Maduro and the opposition are at loggerheads over a referendum to recall him. Authorities say the vote will not happen this year, while the opposition says an unpopular Maduro must be removed to keep a brutal recession from worsening. Some opposition supporters hope factions of Venezuela's opaque but powerful military will nudge the former bus driver and union leader to allow the vote. (Reuters, http://www.reuters.com/article/us-venezuela-politics-idUSKCN0YC0SZ)

 

Regime will make no “concessions” over recall referendum

Legislator Diosdado Cabello, Vice President of the ruling United Socialist Party (PSUV) insists they will make “no concessions” to opponents requesting a recall referendum, and will demand that all deadlines must be met. “It is impossible for a referendum to take place here in Venezuela this year, whatever they say”, he said, adding that in his count the process requires 243 days. “We are asking that each period be complied with according to law, not each step the right wing demands”, he said, and added “we will not give them any type of option”. More in Spanish: (Infolatam: http://www.infolatam.com/2016/05/23/chavismo-asegura-no-dara-concesiones-para-que-se-celebre-revocatorio/)

 

….and CNE says signature verification will require 5 steps, through May 31^st.

At the same time, Carlos Quintero, a deputy director at the National Elections Council (CNE) said the signatures collected to launch the recall referendum will require a 5 step verification process before they are validated, and this process will end on May 31^st.  More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/firmas-del-1-deben-pasar-5-fases.aspx#ixzz49C9hKQGY)

 

Opposition plans to rally in front of the high court, following ban on demonstrations at Elections authority

Miranda state governor Henrique Capriles said an injunction by the Supreme Tribunal of Justice (TSJ) banning any demonstration in the surroundings of the offices of the National Electoral Council (CNE) is unconstitutional, and has called for a march to all the TSJ chapters nationwide on Wednesday, May 25. “We will take action to demand that court officers observe the Constitution, people’s rights and for decisions to ensure benefits mandated by the legislature,” he admonished. (El Universal, http://www.eluniversal.com/noticias/daily-news/venezuelan-opposition-plans-rally-front-the-high-court_311330; El Universal, http://www.eluniversal.com/noticias/daily-news/venezuelan-high-court-bars-rallies-near-the-national-electoral-council_311386)

 

Ban Ki-Moon calls for talks in Venezuela

United Nations (UN) Secretary General Ban Ki-moon has recommended that the Venezuelan government and opposition sit down to talks in order to overcome the national crisis, upholding the Constitution and the rule of law.

Ban claimed to be “encouraged by the ongoing initiatives by former Heads of State and Government to promote dialogue between the Government of Venezuela and the opposition, under the auspices of the Union of South American Nations (UNASUR)”. (El Universal, http://www.eluniversal.com/noticias/daily-news/ban-ki-moon-makes-appeal-for-dialogue-venezuela_311380)

 

Maduro tells UNASUR group promoting talks to be patient and wishes them luck

President Nicolas Maduro wished “good luck” to the group of former Presidents (Jose Luis Rodríguez Zapatero of Spain; Martín Torrijos of Panama; and Leonel Fernandez, of the Dominican Republica) who are seeking to promote talks between the regime and its opponents here under UNASUR auspices; and told them to “be patient.” The opposition Democratic Unity coalition has expressed it is willing to engage in talks if they have a precise agenda that deals first with freeing political prisoners and moving forward with the proposed recall referendum. It rejects talks as a distraction from these issues. Maduro says the talks are for “opposition groups to cease in their coup attitude and cooperate in a dialogue so that the nation can overcome its problems”. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/maduro-pide-paciencia-expresidentes-que-median-dialogo-con-oposicion_310848; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/oposicion-manifiesta-disposicion-al-dialogo-con-pr.aspx#ixzz49C96Uy84)

 

Venezuela has become a failed state.

According to the International Monetary Fund's latest projections, it has the world's worst economic growth, worst inflation and ninth-worst unemployment rate right now. It also has the second-worst murder rate, and an infant mortality rate at public hospitals that's gotten 100 times worse itself the past four years. And in case all that wasn't bad enough, its currency, going by black market rates, has lost 99% of its value since the start of 2012. It's what you call a complete social and economic collapse. And it has happened despite the fact that Venezuela has the world's largest oil reserves. Never has a country that should have been so rich been so poor. Venezuela's government is to blame. Every other country whose economy begins and ends at its oil wells has at least managed to avoid that fate. Which is to say that Venezuela is a man-made disaster. It's a gangster state that doesn't know how to do anything other than sell drugs and steal money for itself.  Venezuela struggles with days of looting, following widespread shortages in energy and basic goods. Venezuela is the answer to what would happen if an economically illiterate drug cartel took over a country. (The Washington Post: https://www.washingtonpost.com/news/wonk/wp/2016/05/19/there-has-never-been-a-country-that-should-have-been-so-rich-but-ended-up-this-poor/)

 

“Yes, I'm mad as a goat!”, Maduro responds to Uruguay's Mujica

Called "mad as a goat" by Uruguay's Jose Mujica this week, President Nicolas Maduro retorted laughingly on Thursday that the former president was right - but he was only crazy with love for his country. "Yes, I'm mad as a goat, it's true," Maduro told a rally of the ruling Socialist Party. "I'm mad with love for Venezuela, for the Bolivarian Revolution, for Chavez and his example," he added, smiling as the crowd cheered, in a reference to former President Hugo Chavez. Mujica, a fellow leftist who ruled Uruguay between 2010 and 2015, said on Wednesday he respected Maduro, but still thought he and others in Venezuela were "crazy" for attacking each other rather than sitting down to resolve problems. (Yahoo News: https://www.yahoo.com/news/yes-im-mad-goat-maduro-responds-uruguays-mujica-013839835.html)

 

Nicolas Maduro, Venezuela’s lord of misrule

Ever since he became Venezuelan president, Nicolas Maduro has gone to ridiculous lengths to eulogize the memory of Hugo Chávez. The burly 53-year-old has claimed to speak with his predecessor’s spirit manifested as a “little bird”. At cabinet meetings he waves a book of his mentor’s sayings as if they are holy script. He has even argued that Chávez should be sanctified: a rare trespass into Christianity by the gaffe-prone Maduro, who once compared Venezuelan socialism to “when Christ multiplied the penises” — a confusion of peces, the Spanish for fish, and penes that must rank as one of the worst malapropisms in history. Such absurdities would be comic if Maduro’s presidency, and the state of the country he has governed for three years, were not so tragic. More than two-thirds of Venezuelans believe he should not finish his term. Instead, this Latin American Mugabe has dug in. This week he claimed the country was suffering a “brutal media and political offensive” from the “Washington-Miami-Madrid” axis. Although he has a 26% approval rating, such exhortations draw only faint cheers from the red-clad supporters bussed in to hear him rant. Chávez controlled the vipers’ nest of Chavista politics with charisma; the leaden Maduro has to use patronage. Corruption flourishes in Venezuela, a narcocracy and petro-state in one.  Maduro’s control of the state oil company and import system gives him economic control; subordination of the courts ensured legal domination. At least until now. The opposition won control of the national congress in last year’s midterm elections and has called for a “no confidence” referendum that could mean Maduro is replaced. Maduro, who calls the opposition “faggots”, swears he will block this constitutionally allowed process. What next? The role of the army as arbiter is crucial. There is a high chance Venezuela could default on its US$ 127 billion of international debt — in which case, oil cargoes could be seized, collapsing internal systems of patronage as dollar revenues dry up. There is persistent speculation of a military-backed palace coup, especially if current sporadic looting spreads. There is a growing risk of a humanitarian crisis. Nonetheless, Maduro may cling on. Luis Almagro, head of the Organization of American States, has called him “a petty dictator”, while Henrique Capriles, an opposition leader, fears Venezuela is “a time bomb”. Both charges appear to be all too true. (Financial Times: https://next.ft.com/content/f7ae1936-1ddc-11e6-a7bc-ee846770ec15)

 

Another Hugo Chavez mystery -- what happened to Venezuela's Air Force One?

Former President Hugo Chavez’s US$ 75 million, customized Airbus luxury jetplane is missing. Chavez had ordered the Airbus A319 jet after seeing one belonging to a sheik of the United Arab Emirates in 2001 but it has not been seen since 2013. After an investigation by the Latin American Herald Tribune, two things seem certain, however: the plane is not in Venezuela and, even worse, it is not in operation, air industry sources say. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2412763&CategoryId=10717)

 

 

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 04, 2016

International Trade

 

Value of Venezuela-U.S. trade plunges 42%

The value of trade between oil-rich Venezuela and the U.S. totaled US$23.88 billion in 2015, a 42.2% reduction from 2014, says the Venezuelan American Chamber of Commerce and Industry (VenAmCham). Venezuela’s trade surplus with the U.S. fell 62% last year to $7.25 billion, mainly due to the plunge in prices for Venezuelan crude oil.
Oil accounts for the vast bulk of Venezuelan exports to the United States. Imports of U.S. goods and services into Venezuela were US$ 8.32 billion last year, 25.32% less than in 2014, VenAmCham said. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2406828&CategoryId=10717)

 

 

Oil & Energy

 

Venezuela says PDVSA revenue down 27% in 2015

Venezuelan state oil company PDVSA'S total revenues fell 27% to US$ 88.5 billion in 2015, while its total financial debt dropped 4% to US$ 43.9 billion, according to government documents published this week by congress.  The Oil Ministry's annual report also said the OPEC nation's export revenue fell 40%, or US$ 38.5 billion, last year due to the plunge in global oil prices. PDVSA's profit in 2015 was US$ 8.5 billion, down from US$ 11.1 billion the previous year, according to the report, whose figures were unaudited. (Reuters: http://af.reuters.com/article/commoditiesNews/idAFL2N16B01I)

 

Venezuela cut oil shipments to PETROCARIBE 17% in 2015, exports rose to China, India, US

Venezuela sent 17% less oil and fuel to the 18 member nations of PETROCARIBE in 2015, for an average 84,000 barrels per day, according to Oil and Mining Ministry data. It dispatched an average 101,000 barrels per day in 2014. In both years the established quota was to be 129,000 barrels per day. The nation overall increased hydrocarbon exports 3.9%, most of which went to Asia, mainly China and India – which received 1,085 barrels daily for a 13.9% increase. North America received a 3.46% increase in shipments. More in Spanish: (El Universal: http://www.eluniversal.com/economia/160303/venezuela-redujo-en-17-los-envios-de-combustibles-a-petrocaribe-en-201)

 

Venezuela claims upcoming oil meet will discuss production freeze, possible further actions

Oil Minister Eulogio Del Pino says over 15 countries will attend an upcoming oil meeting to discuss an output freeze plan and possible further actions, state oil company, He says Qatar, Russia, and Saudi Arabia have agreed to a meeting in mid-March as part of efforts to stabilize oil markets. (Reuters, http://www.reuters.com/article/us-opec-venezuela-idUSKCN0W4263)

 

 

Commodities

 

State-run Café Madrid stops operations for lack of raw materials

Lack of raw materials has brought coffee production of state-run coffee manufacturer Café Madrid to a standstill, says company union representative Benito Molina. Molina stressed that the company has the capacity to produce 2 million kilos of coffee, yet now they produce not even one kilo. "We are asking the government to revise prices, to see if they are in keeping with (money invested by) producers" Molina said as he added some 1,400 workers are about to become unemployed. (El Universal, http://www.eluniversal.com/economia/160302/cafe-madrid-stops-operations-for-lack-of-raw-materials)

 

Rice growers report dramatic levels in Venezuela

Mary Trini Solórzano, CEO of Venezuelan Rice Mills Association, says that "amid the current rice shortage in the country, rice manufacturers in the association (65% of white rice supply) report critical stock levels of this raw material." She adds that al (El Universal, http://www.eluniversal.com/economia/160302/rice-growers-report-dramatic-levels-in-venezuela)

 

Oatmeal, ketchup and preserve production paralyzed 

Damiano del Vescovo, President of FEDECÁMARAS Carabobo, reports that industrial state’s industries are working at 40% capacity, He says food processing plants there have paralyzed some product lines. Workers and union leaders confirmed his statement, pointing out that QUAKER oatmeal and gelatin plants have been paralyzed since 14 December 2015, The same situation arises with the HEINZ preserves plant at San Joaquín, and with their ketchup in small envelopes and by the gallon. More in Spanish: (El Nacional: http://www.el-nacional.com/economia/Paralizada-produccion-avena-tomate-compotas_0_804519789.html)

 

Shortage of hemophilia medicines at 50% in Venezuela

Head of the Venezuelan Hemophilia National Center Arlette Ruiz de Sáez said the country's medical institutions are facing serious flaws in distribution and delivery of medicines for hemophilia patients, since almost half of these drugs are not available.  The scourge has delayed prompt medical assistance in the regular and long-term administration of drugs to prevent hemophilic arthropathy and bleeding caused by this disease. (El Universal, http://www.eluniversal.com/nacional-y-politica/160302/shortage-of-hemophilia-medicines-at-50-in-venezuela)

 

 

Economy & Finance

 

National Assembly threatens to block foreign financing

National Assembly President Henry Ramos Allup has warned that credit operations the regime is negotiating abroad will be null if they are not authorized by the legislature. He wrote in his Twitter account: “Warning to foreign creditors: contracts in the national interest signed by the chavista government will be absolutely null and void without approval by the National Assembly”. For his part, Deputy José Guerra, who chairs the Assembly’s Finance Committee, wrote: “I second what was said by @hramosallup: credits planned by Merentes (Central Bank President) and Del Pino (Oil Minister and PDVSA President) will be null if not approved by the National Assembly. You are warned.” This could put on hold loan operations for US$ 5 billion recently announced by the Central Bank. More in Spanish: (http://bancaynegocios.com/crisis-institucional-an-amenaza-con-bloquear-financiamiento-externo/; http://www.talcualdigital.com/Nota/123706/ramos-allup-prestamos-al-gobierno-sin-aval-de-la-asamblea-son-nulos-de-toda-nulidad)

 

Venezuela paid US$ 1.54 Billion in principal and interest on debt
Venezuela has paid US$ 1.54 billion in principal and interest owed to international bondholders, the Banking and Finance Ministry said Saturday. That same ministry said this week that Venezuela’s foreign debt rose to US$ 42.53 billion last year; around US$ 3 billion shy of its record-high debt level registered in 2012. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2406626&CategoryId=10718)

 

International reserves are vanishing, credit increasingly expensive

The optimum level for Venezuela’s international reserves is at least US$ 29 billion in order to sustain the volume of imports for six months, they are now down to US$ 13.501 billion, which is less than half of that amount. After paying last week’s debt, there are only US$ 900 left at the Central Bank, which could rise to US$ 1.4 billion as ROSNEFT pays for 23% stock in the PETROMONAGAS project. The Central Bank has been using gold reserves to underwrite expenses, but the value of gold reserves (estimated at US$ 10.9 billion) has shrunk 30% since November due to dropping gold prices. Drawing rights with the IMF have also been reduced by official withdrawals. And further credits, loans, barters or negotiations are becoming increasingly expensive for Venezuela. More in Spanish: (Tal Cual, http://www.talcualdigital.com/Nota/123714/desaparecen-las-reservas-internacionales?platform=hootsuite)

 

S&P says Venezuela has "heightened risk of default"

Standard & Poor's Ratings Services has affirmed its 'CCC' long-term foreign and local currency sovereign credit ratings on the Bolivarian Republic of Venezuela. The outlook on both long-term ratings remains negative. They also affirmed their 'C' short-term foreign and local currency ratings. In addition, they affirmed their 'CCC' transfer and convertibility assessment on the sovereign. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2406806&CategoryId=10717)

 

World Bank body partially lifts suspension on Tidewater award in Venezuela case

A World Bank tribunal partially lifted a stay of enforcement on a compensation claim payable by Venezuela to oil service company Tidewater, meaning the company is due US$ 27.4 million plus interest. (Reuters, http://www.reuters.com/article/venezuela-tidewater-idUSL2N1692CH)

 

Venezuela’s financial struggles must be top U.S. priority

As low oil prices shake the global economy, keeping an eye on Venezuela should be a top priority for the U.S., Robert Kahn, a senior fellow for international economics at the Council on Foreign Relations, told the Senate Foreign Relations Committee on Wednesday. “Of all the countries that are at risk, this is the one we need to be most focused on right now,” Kahn said. “Because Venezuela is a country on the edge.” “If the government responds by further compressing imports, popular support for the government could collapse,” Kahn said in his written testimony. “Change could come quickly, not because of a debt payment due but rather because of domestic conditions.” He added that if Venezuela’s financial struggles lead to a change in government, the U.S. and international policymakers should move quickly to help set up a plan to: move Venezuela’s national energy prices to world levels; balance the country’s budget; recapitalize its banks; and develop a social safety net. (Morning Consult: https://morningconsult.com/alert/economist-u-s-must-focus-on-venezuelas-financial-struggles/)

 

Venezuela is running out of money

The price of oil, which makes up almost all of the country’s exports, has tumbled 75% in the past three years and investors are predicting the country is on course for the biggest-ever emerging-market sovereign default. No nation in the world is more likely to miss payments, according to traders of its credit-default swaps. The country already tops measures of the world’s most miserable economy, a horrific turnaround for what was once one of the region’s most stable democracies. If there’s a default, when is it most likely to come? In October and November of this year, PDVSA needs to pay back US$ 4.1 billion of bonds and US$ 1 billion in interest. Trading in the credit-default swaps market suggests there’s a 76% chance Venezuela will default in the next 12 months. What overseas assets could investors try to seize? PDVSA has refineries, tankers and receivables. Of course, the value of the oil assets depends in part on the price of crude. The operating assets of CITGO, PDVSA’s U.S. refining subsidiary, are already pledged to creditors. Is there any hope that things can get better? First, the government could implement reforms such as cutting subsidies on gasoline or devaluing the currency, which would allow it to stretch its dollar income much further. Second, the political opposition is gaining ground. Third, China could appear with new financing. Fourth, oil prices could rise. The country can scrape by with an average price this year of US$ 50 to US$ 65 a barrel, according to estimates from Barclays, Bank of America and Nomura. (Bloomberg: http://www.bloomberg.com/news/articles/2016-02-10/venezuela-s-descent-into-world-s-riskiest-sovereign-credit-q-a)

 

National Assembly moves to take back powers over Central Bank

A new law just passed in its first discussion by the opposition majority within Venezuela’s National Assembly aims at reversing Maduro’s last minute decree of December 2015.  MUD’s bill basically claws back two areas of influence for the Assembly: 1) it allows the Assembly to name 2 (out of 7) board members; and 2) it allows AN to demand information from the BCV.  In the words of the President of the Subcommittee for Finance and Tax Policies, Rafael Guzman, the reform aims to restore AN’s role as BCV’s watchdog. (Caracas Chronicles: http://caracaschronicles.com/2016/02/29/51805/)

 

China and Venezuela ratify investment projects

Venezuelan and Chinese governments on Monday ratified investment agreements in production projects signed in September 2015, for diversifying the nation’s economy. The announcement was made by Planning Minister Ricardo Menéndez. Menéndez, who heads the China-Venezuela High Level Joint Commission, is in Beijing, briefing Chinese officials. (El Universal, http://www.eluniversal.com/economia/160302/china-and-venezuela-ratify-investment-projects)

 

Politics and International Affairs

 

Opposition to go for constitutional assembly if Court continues hampering Assembly

Jesus Torrealba, executive secretary of the opposition Democratic Unity Roundtable (MUD) says Torrealba said a National Constitutional Assembly would be called “if the government continues perverting the functions of the Supreme Justice Tribunal and other institutions”.  The opposition is continuing meetings to settle upon a political plan to end Maduro’s term of office, “because the least costly way of making changes is the constitutional way…two other instruments are being debated: a constitutional amendment and a recall referendum”. The Supreme Court is meanwhile likely to reject any constitutional maneuvers to oust the president -- which could also include convening a constitutional assembly to draft a new charter or declaring Maduro in breach of duty. Highlighting the tension gripping the country, violence broke out Wednesday at a protest over the recent Supreme Court ruling in the western city of San Cristobal, the cradle of the protests that shook the country in 2014. Chavistas, in turn, attacked and wounded an opposition legislator right outside the National Assembly. (Jamaica Observer: http://www.jamaicaobserver.com/latestnews/Venezuelan-opposition-delays-announcing-plan-to-oust-Maduro; and more in Spanish: (Ecos del Torbes: http://ecosdeltorbes.net/2016/03/04/mud-apostaria-por-asamblea-constituyente-si-tsj-emprende-nuevas-acciones-contra-an/)

 

Confrontation continues between National Assembly and Supreme Court

• The National Assembly ad hoc committee analyzing the appointment of 34 justices (13 main justices and 21 alternates) to Supreme Court (TSJ) last December by the government’s simple majority found 17 irregularities in their appointment. Among them, that the Nomination Committee was not presided by a legislator after PSUV Deputy Elvis Amoroso resigned.
• The Supreme Court countered with a sentence written by magistrate Arcadio Rosales, stripping the National Assembly of powers to revoke appointments of Supreme Court justices, oversee other state powers, summon government and military officials, and said the two thirds majority within the legislature was 112, after having suspended 3 out of 112 opposition legislators.
• National Assembly President Henry Ramos Allup immediately responded saying the sentence “does not exist. The Supreme Court law requires the sentence to be signed by 5 out of 7 magistrates in the Constitutional Chamber, and it was signed by only 4”.
• Ramos Allup further warned pro government legislators that “To depend only, only on Supreme Court sentences means something is very wrong with the government. The regime is very weak, with no popular support, and depends only on Supreme Court sentences; beware of depending on that Court which appears discredited in all polls; if this all collapses – as it is on the verge of doing – we all know what could happen”.
• He also sent a message to the international financial community: “Warning to foreign creditors: contracts in the national interest signed by the chavista government will be absolutely null and void without approval by the National Assembly”
• The National Assembly then voted to ask the OAS to apply Democratic Charter in Venezuela as the constitutional order has been violated here, deplored the TSJ ruling and ratified the Congress as an authority to control and investigate all matters set forth in Article 187 of the Constitution, paragraph 1.

(El Universal: http://www.eluniversal.com/nacional-y-politica/160303/congress-asks-oas-to-apply-democratic-charter-in-venezuela; http://www.eluniversal.com/nacional-y-politica/160302/an-we-will-legislate-regardless-of-court-decisions; Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=47007&idc=1; http://www.veneconomy.com/site/index.asp?ids=44&idt=47008&idc=1); and more in Spanish: (Konzapata: http://konzapata.com/2016/03/el-alerta-de-ramos-allup-que-silencio-a-la-bancada-oficialista/?ct=t()

 

OAS SG: Main symptom of political failure is lack of talks

Secretary General of the Organization of American States (OAS) Luis Almagro says political and social stability in Venezuela is fundamental for the regional body. In this regard, Almagro reiterated that the OAS seeks peace and democracy for the country. He stressed that negotiations must be conducted "with much institutional and democratic respect" adding that "the first symptom of political failure is lack of dialogue". (El Universal, http://www.eluniversal.com/nacional-y-politica/160301/oas-sg-main-symptom-of-political-failure-is-lack-of-talks)

 

Obama extends order declaring Venezuela a national security threat

President Barack Obama on Thursday extended for one year an executive order declaring the situation in Venezuela a threat to U.S. national security, saying conditions there had not improved and that the country's leftist-led government was continuing to erode human rights guarantees. The U.S. head of state also said Venezuela was continuing to experience abuses in response to protests against President Nicolas Maduro, arbitrary arrests of anti-government protestors and significant public corruption by senior government officials. The executive order also authorizes the Treasury Department to impose additional sanctions on those found to have committed either "actions or policies that undermine democratic processes or institutions" or rights violations against persons involved in anti-government protests, the White House said. (Fox News Latino: http://latino.foxnews.com/latino/politics/2016/03/03/obama-extends-order-declaring-venezuela-national-security-threat/)

 

SPECIAL REPORT: In Venezuela, armed groups find opportunity in calamity

As economic and political instability rises, the streets of Caracas will likely see more violence. So far, the government has not proved capable of pacifying and retaking the colectivo-controlled neighborhoods, which are essentially separate political entities. Despite being highly disorganized, the colectivos have managed to take advantage of the ruling party's fragmentation and its weakened grip on power, bringing anarchy to the streets of Caracas. Some 80% of Venezuela's colectivos are concentrated in western Caracas, primarily in the neighborhoods of Sucre, Petare, Cotiza, Chacao and Catia. For the most part, Venezuelan security forces are not allowed into neighborhoods controlled by colectivos without first receiving permission, even if they have search and arrest warrants. The government has lost its sovereignty in such areas, making it difficult to enforce the rule of law there. This has given the colectivos room to pursue illegal activities largely unhindered, including drug trafficking, extortion, racketeering, contract killings and car theft. The colectivos' interests align with those of the PSUV, their longtime backers, particularly when it comes to tamping down on Venezuela's political opposition. For example, the colectivos used aggressive tactics, including attacks against political rallies for Venezuelan opposition leaders, in the lead-up to the country's December 2015 legislative elections. They now harass opposition lawmakers being sworn into the National Assembly in January. Nevertheless, a rift is forming between the colectivos and the government of President Nicolas Maduro, who launched Operation Liberation and Protection of the People in mid-2015. The effort, which primarily aimed to disarm the paramilitary colectivos and combat organized crime more generally, sparked an unofficial war between the colectivos and the government. The feud resulted in the deaths of 350 public officials in 2015; in January, government forces reciprocated by killing more than 200 alleged members of organized crime. In the meantime, the colectivos have antagonized Maduro even more by killing off-duty security personnel and kidnapping a high-ranking military officer. As the Venezuelan economy continues to fall apart, the colectivos will likely seize the opportunity to launch contraband operations, stealing trucks carrying food and basic products with the intent of reselling the stolen goods at much higher prices. And the Maduro government, already embroiled in a lengthy political spat with the opposition, will likely be too preoccupied to stop them. Given enough time, the colectivos could even evolve into organized crime groups — a threat that would prove even more difficult to eradicate. (Stratfor: https://www.stratfor.com/analysis/venezuela-armed-groups-find-opportunity-calamity?id=be1ddd5371&uuid=b8197835-f1e2-4ca1-9020-b045182a3e1d)

 

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.

January 28, 2016

International Trade

 

Money to pay debt to Uruguayan dairy producers is in China, according to Uruguayan Deputy Jaime Trobo. He explained the agreement signed between the two nations established Banco de Desarrollo, BANDES-Uruguay, was to open a trust to pay for food products sold to Venezuela, but Uruguay did not inform producers BANDES could give the money the use it would see fit. (Venecomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=46767&idc=2)

 

 

Oil & Energy

 

World Bank predicts oil prices will drop further in 2016, and remain low

The World Bank predicts the average price of a barrel of crude oil may drop further to US$ 37 during 2016 due to weak emerging economies and increased supply as Iran comes back into international markets. Barely 3 months after its previous projection, which had oil price averaging US$ 51 per barrel, the Bank has sharply cut back its estimates to a US$ 37 average, and warns this trend will hold “for some time.” More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Banco-Mundial-Crudo-internacional-profundizara_0_782321809.html)

 

Venezuela oil group seeks incentives to lure more foreign money

Venezuela’s main hydrocarbon association has proposed measures aimed at attracting more investment from international oil companies as prices drop to the lowest in more than a decade. Incentives would include reducing royalties and extraction taxes to 20% from 30-35%, applying a single exchange rate for the oil industry and granting more decision-making powers to joint venture partners. The measures, presented yesterday to the President’s National Council for Productive Economy, are needed to support oil-sector investments, according to a document outlining the proposals. “There have to be changes in the oil sector, and not just a more competitive exchange rate for the sector,” Asdrubal Oliveros, director of consulting firm ECOANALITICA, said during a meeting yesterday with foreign press at Bloomberg’s office in Caracas. “Until we have a collapse and change in this model, we will not see more oil sector investments.” (Bloomberg, http://www.bloomberg.com/news/articles/2016-01-26/venezuela-oil-group-seeks-incentives-to-lure-more-foreign-money)

 

Oil minister to visit OPEC, non-OPEC countries

Venezuela's oil minister will tour OPEC and non-OPEC countries in a bid to drum up support for joint action to stem the tumble in crude prices, President Nicolas Maduro announced on Tuesday night. "I've given the order to minister Eulogio del Pino for him to immediately start a tour of OPEC and non-OPEC countries," the leftist leader said in a televised broadcast. The Organization of the Petroleum Exporting Countries is considering a request from cash-strapped Venezuela to hold an emergency meeting to discuss steps to prop up prices, and Venezuela has called for a meeting of OPEC and non-OPEC nations in February. "We must stop this madness," a solemn-faced Maduro said about oil prices, urging "clear, consequential and coordinated" action. (Reuters, http://www.reuters.com/article/us-opec-venezuela-idUSKCN0V5035)

 

Former Chavez Finance Minister calls for revising credits to PETROCARIBE and other nations

Rodrigo Cabezas, who served as Finance Minister under the late President Chávez, says that in view of the current fiscal situation the country must review each one of its agreements, “soft” credit and subsidies to other nations in the region and with multilateral arrangements such as PETROCARIBE. He called such actions “absolutely pertinent” within fiscal restrictions. Cabezas also said a “default” scenario is “undesireable”. More in Spanish: (El Universal, http://www.eluniversal.com/economia/160127/plantean-revisar-creditos-en-petrocaribe-y-otros-paises)

 

 

Commodities

 

Sugar production has dropped 44% over the past year, according to the President of the National Federation of Cane Growers, José Ricardo Álvarez, who says the situation has never been as grave over the past 60 years. “It is now better for growers to leave sugar cane fallow in the fields than harvest it, because one loses less”, he says – and reports sugar growers produced 83,797.64 tons in January 2015 and only 46,177 tons so far this year due to price controls. More in Spanish: (El Nacional; http://www.el-nacional.com/economia/Produccion-azucar-cayo-ano_0_782921977.html)

 

 

Economy & Finance

 

IMF sees inflation explosion here, 18% contraction

According to the IMF: “In Venezuela, longstanding policy distortions and fiscal imbalances were already having a deleterious effect on the economy before the collapse in oil prices. These problems worsened as falling oil prices triggered an economic crisis, with an expected fall in output of almost 18% over 2015 and 2016 (the third sharpest decline in the world). A lack of hard currency has led to scarcity of intermediate goods and to widespread shortages of essential goods—including food—exacting a tragic toll. Prices continue to spiral out of control, and we expect inflation to rise to 720% this year, from a world-high inflation of about 275% in 2015.” (IMF: http://blog-imfdirect.imf.org/2016/01/22/latin-america-and-the-caribbean-in-2016-adjusting-to-a-harsher-reality/)

 

NOMURA says economic transition in Venezuela is “irreversible”

The latest report from Japan’s NOMURA firm says “economic transition is irreversible” in Venezuela, and explains the drop in commodity prices is aggravating imbalances. It warns economic distortions cannot be solved by reducing imports or a default on foreign debt, either of which can only “aggravate stagflation”.  It says cash flow is shrinking daily “amid a slow political and economic transition”. The firm says the next moves are up to the opposition in their bid for leadership, but the risk remains that the Maduro regime could “make them draw back”.  More in Spanish: (El Nacional: http://www.el-nacional.com/economia/Nomura-transicion-economica-irreversible_0_782921984.html)

 

Venezuela plans to transition away from oil-dependent economy

Venezuela’s Economic Council has presented measures to transition away from an oil-dependent economic model, Vice President Aristobulo Isturiz said Tuesday.  The council, which was created in January, presented its first proposals to the government, which recently announced an emergency decree to battle the economic situation here.  Isturiz said the council’s working groups have been supported by local businessmen.  He said that the state guarantees the production of raw materials, credit and other facilities to domestic producers.  The vice president stressed that the government's priority is to fund social benefits in education, health, food, housing, among others, as well as revitalize the economic and productive engine of the country. He said the council’s roundtables began discussing three of the 11 strategic economic areas—telecommunications, tourism and petrochemicals—began Monday.  Other key areas tapped to reinvigorate the productive economy include food processing, mining, information technology, construction, export, forestry and industry. (TELESUR: http://www.telesurtv.net/english/news/Venezuela-Plans-to-Transition-Away-from-Oil-Dependent-Economy-20160126-0011.html)

 

Government creates centralized procurement system

President Nicolas Maduro has signed a decree under which Centralized and Standardized System of Government Procurement is established for all the bodies of public administration, effective from Monday, February 1. The president noted that he had received from the National Council of Productive Economy all the proposals brought forward at the work sessions of the nine economic engines. Maduro said he would study all the proposals during the IV Summit of the Community of Latin American and Caribbean States (CELAC). (El Universal, http://www.eluniversal.com/economia/160127/venezuelan-govt-creates-procurement-centralized-system)

 

Venezuela’s economic, social indicators speak for themselves

The country is starting to show cracks everywhere and is reaching boiling point. Several economic indicators more than tell about that situation. Among issues affecting the nation’s economic sphere: Venezuela has the highest inflation rate in the world. Venezuela’s inflation hovered near 300% in 2015, and may reach 720% in 2016, according to the International Monetary Fund. Shortages of food items, medicines and capital goods exceed 80%. The income of citizens slips through their fingers as their purchasing power has been reduced to nothing. Besides becoming desperate and helpless for not finding the essential foodstuff and/or medicines for them or any member of their family. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2404207&CategoryId=10717)

 

Inflation of the food basket goes up 1% daily since December 2015, according to the Venezuelan Teachers’ Federation’s Social Documentation and Analysis Center (CENDAS-FVM). It is the first time such a high is recorded. At the end of December, the food basket was VEB 139,273.68, up 361.5% from December 2014 when it was VEB109,096.86. (Venecomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=46770&idc=2; http://www.veneconomy.com/site/index.asp?ids=44&idt=46768&idc=2)

 

6.2 minimum wages are now needed to buy the basic food basket

In average, 4.77 minimum wages were needed to cover the basic food basket between 1999 and 2014. However, this changed at the end of 2014 when 6.2 minimum wages were required to cover it until it reached the 14.4 minimum wages at the end of December 2015, according to the CENDAS-FVM. According to CENDES, not even the basic salary of a Major General is sufficient to acquire the basic food basket, A sargeant can only purchase 9.8% of the same basket. (Venecomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=46769&idc=2; and more in Spanish: (El Nacional, http://www.el-nacional.com/economia/salario-basico-general-canasta-basica_0_782321994.html)

 

 

Politics and International Affairs

 

National Assembly President says economic crisis will sink Maduro

National Assembly President Henry Ramos Allup doubts President Nicolas Maduro will serve out his six-year term in view of the acute economic crisis here. He adds that his exit could even take place this year. “In this situation I don’t believe he will serve out his term…..he is being swallowed up by the crisis”. Ramos adds that for the nation to be rid of the highest inflation in the world, economic recession and scarcities, Maduro and his cabinet must step aside. “If they insist – as they are doing – on continuing applying a model that his failed in every sense, the reply is obvious: those who are so insisting in this crisis must leave, otherwise we will not overcome it”. And he adds: “We have insisted that the way out of this crisis must be democratic, constitutional, peaceful and elective. None other.” The opposition coalition has signed an agreement to seek a way out of this situation within six months, and Ramos says they are already working at it because “to wait for the crisis to become worse is an irresponsible political gambit”. More in Spanish: (Infolatam: http://www.infolatam.com/2016/01/26/crisis-economica-de-venezuela-hundira-a-maduro-segun-el-presidente-de-la-asamblea/)

 

Maduro to ask CELAC aid in economic emergency

Upon his arrival in Quito, Ecuador to attend the IV Summit of Heads of State and Government of the Community of Latin American and Caribbean States (CELAC), President Nicolás Maduro said that he would propose some ideas to tackle the economic emergency in Venezuela with the help of Latin American countries. The president said he would meet with his CELAC counterparts to address the economic crisis in his country and "foster fair trade, complementarity, and solidarity. Venezuela comes with a proposal, as always, to find our own solutions and our own path by ourselves." (El Universal, http://www.eluniversal.com/nacional-y-politica/160127/venezuelas-maduro-to-ask-celac-aid-in-economic-emergency)

 

Chavez's dream of unity stumbles ahead of Latin American summit

Before he died, Venezuela’s late president, Hugo Chavez, had a dream to unite Latin America and the Caribbean against the dark forces of the U.S. empire. It’s not working out like he planned. As presidents and prime ministers from the regional group CELAC meet Wednesday in an attempt to knit closer ties, President Nicolas Maduro, Chavez’s hand-picked successor, finds himself fending off attacks from the nation’s former ally, Argentina. “Why does a country have to put up with the whole onslaught of right-wing governments,” Maduro said Saturday after Argentina’s newly-elected president, Mauricio Macri, criticized his government’s human-rights record. “I’m going to the summit of Latin America and the Caribbean nations in Quito with everything. No one is going to shut me up.” (Bloomberg, http://www.bloomberg.com/news/articles/2016-01-27/chavez-s-dream-of-unity-stumbles-ahead-of-latin-american-summit)

 

Garrulous Maduro has addressed Venezuela for 500 hours

President Nicolas Maduro has spent more than 500 hours addressing Venezuela since gaining power nearly three years ago, demonstrating a loquacity reminiscent of his late predecessor Hugo Chavez, according to a watchdog. The tally, from the local Citizens' Monitor group which is critical of the government, was based on Maduro's so-called "chain" speeches, when all local broadcasters are required to transmit his words live. Counting other speeches, carried only by state TV, the 53-year-old former bus driver and foreign minister has in fact spent far more time giving public addresses.

"In the first few weeks of this year, he surpassed 500 hours," the group said this week in a blog. "Every time the presidency holds a 'chain', they are denying Venezuelans their control over freedom of information and entertainment." (Reuters, http://www.reuters.com/article/us-venezuela-maduro-idUSKCN0V42A8)

 

Electoral body issues reply on Amazonas contested deputies

The National Electoral Council (CNE), headed by Tibisay Lucena, has issued an "administrative response" to the Supreme Tribunal of Justice (TSJ) regarding the contested election of three deputies for Amazonas state and one indigenous representative. The information was aired by the First Vice-President of the National Assembly, Simón Calzadilla, who heads the parliament committee that studies the case. Deputy Calzadilla said that Lucena refused to reveal the content of the documents that were sent to the TSJ. (El Universal, http://www.eluniversal.com/nacional-y-politica/160127/electoral-body-issues-reply-on-amazonas-contested-deputies)

 

Freedom House: Democracy faces challenges in Venezuela

Freedom in the world declined in 2015. Even though Latin America as a whole showed some improvement, democracy in Central America and Venezuela faces serious challenges, according to the annual report released by Freedom House on Wednesday. The organization that advocates freedom and democracy highlighted that democracy and freedom are at risk in El Salvador, Guatemala, Honduras, and Venezuela. In the latter, Freedom House reported "persecution" against the opposition. The Latin American country with the worst score in freedom and democracy is Venezuela, considered "partially free" with a score of 35 out of 100, followed by Haiti (41) and Honduras (45). (El Universal, http://www.eluniversal.com/nacional-y-politica/160127/freedom-house-democracy-faces-challenges-in-venezuela)

 

 

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.