July 28, 2015

International Trade

 

Cargo that has arrived at Puerto Cabello:

• 60,000 tons of white corn from Mexico for state agency CASA
• 30,000 tons of raw sugar from Brazil for CASA.
• Over 16,852 tons of soy oil from Aceitera General Deheza and Cargill Saci for ALIBAL and CARGILL Venezuela.
• 12,000 tons of soy oil from Argentina for Consorcio Oleaginoso Portuguesa (COPOSA).  

More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Gobierno-Nacional-recibe-mas-de-90-mil-toneladas-de-alimentos-2470610/2015/07/27/565498)

 

Government imports 27,600 tons of coffee to meet scarcity

Víctor Pérez, who heads the coffee section of the national agricultural association FEDEAGRO, reports the government has imported some 27,600 tons of coffee from Nicaragua and Brazil in order to meet scarcities. He says this volume could cover 5 months of consumer demand under norma conditions. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/industrias/importan-600-mil-quintales-de-cafe-para-paliar-las.aspx#ixzz3hBELZzoB; El Nacional; http://www.el-nacional.com/)

 

 

Logistics & Transport

 

AVIOR Airlines launching flights Valencia to Bogota and Medellin in Colombia tomorrow. Its marketing vice president Gibson Preziuso said there will be five weekly flights to each destination. Tickets will be Bs.60,000-80,000. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44799&idc=3)

 

Domestic flights are down 30% in the past 16 months, according to José Antonio Yapur, head of the Tourism Council. He says the number of flights are down to key vacation destinations such as Margarita, Carúpano, Canaima, Coro, Los Roques and Mérida. (El Nacional; http://www.el-nacional.com/)

 

 

Oil & Energy

 

Venezuela seeks light crude contracts to make blends -sources

Petroleos de Venezuela (PDVSA) has asked oil suppliers to submit offers to sell the nation up to 70,000 barrels per day of ultralight sweet crudes through contracts of one to five years. If successful, the move would mark the most definitive step state-owned PDVSA has taken to obtain longer-term supplies of ultralight crude, which it needs to use as a diluent for its growing output of extra heavy oil. PDVSA bought some 4 million barrels of Algeria's Saharan Blend light crude from October 2014 through January of this year under an agreement with state-run Sonatrach. That deal ended after disagreements over prices and delivery terms, forcing PDVSA to resume production of less attractive blends made with imported naphtha. (Reuters, http://www.reuters.com/article/2015/07/27/oil-venezuela-imports-idUSL1N1041K620150727)

 

Venezuelan oil continues to "weaken"

Venezuela's Ministry of Petroleum and Mining reports that the price of Venezuelan oil continues to "weaken" in the international market. The Ministry points out that during the week of July 13-17 Venezuelan oil averaged US$ 49.89 per barrel, while in the week of July 20-24 it ended at US$ 47.89, losing US$ 2 per barrel. "The price of oil continued to weaken during the week amid concerns grounded on oversupply of crude oil on the main markets," the Ministry noted. (El Universal, http://www.eluniversal.com/economia/150727/venezuelan-oil-continues-to-weaken)

 

Guyana considers alternatives as Venezuela oil program wobbles

Guyana is considering energy alternatives to the PETROCARIBE program as Venezuela fails to meet export quotas and tensions flare between the neighboring countries. “We are actively considering other options,” says Guyanese Finance Minister Winston Jordan. The small South American nation receives about half its fuel supply from the PETROCARIBE program, but fears the agreement could be affected by a diplomatic spat with Venezuela over a longstanding border dispute, Jordan said. Guyana currently receives about 5200 barrels of fuel a day under the PETROCARIBE program, though Venezuela has been unable to meet some delivery quotas, he said. (Bloomberg, http://www.bloomberg.com/news/articles/2015-07-24/guyana-considers-alternatives-as-venezuela-oil-program-wobbles)

 

Spain’s REPSOL said to weigh sale of assets including Venezuela

REPSOL is considering selling assets in countries including Venezuela as the Spanish oil company seeks to reduce debt after its US$ 13 billion purchase of Talisman Energy Inc. last year, people familiar with the matter said. As part of its plan to reduce peripheral assets, Madrid-based REPSOL may also look at divestments in Alaska, Bolivia and the Gulf of Mexico. No final decision has been made and the company is still deciding which units to sell, or whether to keep the assets, they said. (Bloomberg, http://www.bloomberg.com/news/articles/2015-07-23/spain-s-repsol-said-to-weigh-sale-of-assets-including-venezuela)

 

PETROVIETNAM ponders investments in Orinoco Oil Belt

A delegation from Vietnamese state-run oil company PetroVietnam visited areas of the Ayacucho Division of the Orinoco Oil Belt in Anzoátegui state, northeast Venezuela. The delegation was headed by the Vice-President of PETROVIETNAM, Cao Huu Binh. Part of the board of the Ayacucho Block received the delegation during the visit to the Basic Unit of Production Construction (UBCP) and the PDV-71 drill. (El Universal, http://www.eluniversal.com/economia/150727/petrovietnam-ponders-investments-in-orinoco-oil-belt)

 

 

Economy & Finance

 

Venezuelan currency enters free fall mode

Having tumbled beyond the 500 per dollar mark in the black market at the start of the month, and then the 600 mark just eight days later, the bolivar is now within sight of crashing through the 700 barrier. The so-called bolívar "fuerte" - or strong bolivar - hit a new low of 683.26 per dollar on the black market last week, according to a rate tracking website. This means the bolivar's value on the black market is now less than a hundredth of the main government rate of 6.3 bolivares to the dollar - and underscores the growing inability of Nicolas Maduro, Venezuela's president, to stabilize the country's fast deteriorating economy. The currency has lost 43% of its value over the past month, as a fresh dive in global oil prices squeezes government finances and drains foreign reserves. It is worth a thousandth of what it was in 1999, when Hugo Chávez came to power. Meanwhile, price increases are seen by economists to be approaching hyperinflation territory as the government cranks up the printing press to pay its expenses. Most economists reckon that the inflation rate is already 120% a year (the central bank stopped publishing price data, so no one is sure). Some expect it to reach 200% by the end of 2015. The bolivar's implosion has been wreaking havoc on big multinationals that are still doing business in the country. American Airlines and Coca-Cola FEMSA, the Mexican bottler, became the latest to sound the alarm last week. The US airline, which has already been cutting its service to Venezuela, warned that there's a risk of further losses on the US$ 629 million in cash it has in bolivars. FEMSA meanwhile said a move to reduce the value of its revenue from Venezuela by 95% has wiped out its sales and profit gains for the year to date. (Financial Times, http://www.ft.com/fastft/366271/venezuela-bolivar; The Economist, http://www.economist.com/blogs/freeexchange/2015/07/chinas-wild-stockmarket?fsrc=permar|image1)

 

Harvard Professor now says Venezuela won’t escape default in ’16

Harvard University Professor Ricardo Hausmann last year questioned Venezuela’s decision to keep paying bondholders as the country sank deeper into crisis and suggested it stop honoring the debt. Now, he’s saying Venezuela will have no choice but to default next year. Hausmann’s comments come as a deepening collapse in oil prices and a shortage of dollars stoke concern Venezuela is fast running out of money to stay current on debt. The country’s bonds plunged last year after Hausmann, who served as Venezuelan planning minister in 1992 coup, raised the specter of default, saying he found “no moral grounds” for the government to pay debt at a time when Venezuelans were facing shortages of everything from basic medicine to toilet paper. (Bloomberg, http://www.bloomberg.com/news/articles/2015-07-27/harvard-professor-now-says-venezuela-won-t-escape-default-in-16)

 

Venezuela bonds worth holding to Morgan Stanley as reserves fall

Venezuela is blowing through its reserves at a pace of about US$1.6 billion a month, Morgan Stanley estimates. Even so, the country can probably hold out long enough that investors can still profit from holding the government’s bonds. President Nicolas Maduro needs to start selling assets urgently, writes strategist Robert Tancsa. He thinks the country is unlikely to default this year after local buyers bought up large chunks of the Petroleos de Venezuela bonds coming due in the fourth quarter. Morgan Stanley recommends holding the country’s bonds, especially Petroleos de Venezuela SA’s bonds due in 2022, which yield 34%. Prices are so low that the odds of a default are arguably priced in, Tancsa wrote. The oil company is a better credit than the sovereign, he wrote. (Bloomberg, http://www.bloomberg.com/news/articles/2015-07-24/venezuela-bonds-worth-holding-to-morgan-stanley-as-reserves-fall)

 

Venezuela’s fiscal deficit will be $20.2 billion by the end of 2015 if there are no more cuts in imports and other adjustments are not made, according to estimates from Bank of America Merrill Lynch. The financial institution explained that even if Venezuela can sustain this for two years, this economic course is “clearly unsustainable.” In a year, imports have been cut by 24.1%. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=44803&idc=2)

 

Pro-government legislators propose dual FOREX rate

Rodrigo Cabezas, Vice-President for Foreign Relations of the ruling United Socialist Party of Venezuela (PSUV), is the first government ally to suggest the idea of a foreign exchange simplification and a dual foreign exchange rate. Other pro-government legislators have supported the initiative, including José Alfredo Ureña, Jesús Faría, and Alexander Dudamel. Ureña, a member of the National Assembly Finance Committee, says that a dual foreign exchange rate could be adopted in the upcoming days, as the current system in place creates market distortions. (El Universal, http://www.eluniversal.com/economia/150727/pro-government-deputies-propose-dual-forex-rate)

 

Central Bank drains liquidity by VEB 25.90 billion

As part of its monetary policy, the Central Bank of Venezuela (BCV) has been combining liquidity-absorbing operations with the issuance of an investment instrument designed to cut excess liquidity that could put counterproductive pressures on the economy. The amount involved in the operations is VEB 25.90 billion (US$ 4.07 billion at the official exchange rate of 6.30 VEB per US dollar.) (El Universal, http://www.eluniversal.com/economia/150727/venezuelas-central-bank-drains-liquidity-by-veb-2590-billion)

 

 

Politics and International Affairs

 

Capriles meets OAS Secretary General to seek OAS observers in elections, Maduro slams OAS

Henrique Capriles, two-time Venezuelan opposition presidential candidate, has met with OAS Secretary General Luis Almagro, to present a "proposal of an OAS election observation mission in the upcoming parliamentary elections and to also explain the human rights and economic situation”. Almagro reported he met with Capriles "using Venezuela's constitution and institutions as the axis". Venezuela´s electoral authority has invited experts from the Union of South American Nations, or UNASUR, to be part of a so-called “electoral accompaniment” and has not responded to requests to include observers from other organizations. But President Nicolás Maduro later said Almagro must be asked "whether he will work for Latin America and the Caribbean or for Washington". He added that "The OAS is 67 years old and useless" and said there is a "jinx" on the Secretary General's office that "turns it into a den of conspiracy" against popular movements. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2393125&CategoryId=10717; El Universal, http://www.eluniversal.com/nacional-y-politica/150727/oas-observation-requested-in-december-election; and more in Spanish: El Nacional; http://www.el-nacional.com/; Infolatam, http://www.infolatam.com/2015/07/27/maduro-ataca-a-la-oea-y-pide-a-eeuu-colombia-y-al-papa-apoyar-plan-de-alba/)

 

Regime bars foreign lawmakers’ visit to jailed opposition leader

Authorities of the jail near Caracas where Venezuelan opposition leader Leopold Lopez is being held have refused to allow a group of foreign lawmakers to visit him. “I wish to tell the Venezuelan people and above all the political leaders who are unjustly imprisoned that we will not abandon them in this struggle... we will press on,” said Spanish Sen. Ander Gil. The group, which also included Gil’s colleagues Dionisio Garcia, Iñaki Anasagasti and Josep Maldonado, along with Uruguayan Sen. Pablo Mieres, was frustrated in its attempt to see an opposition politician behind bars. The foreign legislators, accompanied by Lopez’s wife, Lilian Tintori, were in possession of a document with the seal of the Interior Ministry allowing them to visit opposition leaders. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2393068&CategoryId=10717)

 

Chavismo comes in third place in poll

A recent poll by IVAD'S VENEBARÓMETRO shows the opposition holding first place in voter preference, with 32.6%, independents taking 27.6%, and pro regime "chavistas" coming in third with 20.8% support. The remaining voters said they were undecided. Given a choice between two options, opposition support rises to 41.8%, "chavistas" to 22.1% and undecided voters show at 20.6%. The remaining 15.6% say they will not vote. (El Nacional; http://www.el-nacional.com/)

 

MUD: This is the best electoral structure we have had in 16 years

Jesús Torrealba, Secretary General of Venezuelan opposition coalition Unified Democratic Conference (MUD), says the opposition alliance has the best electoral structure in the last 16 years for the upcoming parliament vote in December "not only to protect the votes where it is clear that we are a majority" but also in rural balloting centers with few polling stations "because there is where tricks are focused, there is where, statistically speaking, we have seen balloting stations with an irregular behavior." Torrealba stressed the MUD had enough poll workers to accomplish that, and that, since work is being done five months ahead of the election, opposition electoral witnesses will be supported by the residents of rural areas. He remarked that people who voted for late president Hugo Chávez in the past would not vote for the current government. (El Universal, http://www.eluniversal.com/nacional-y-politica/150727/mud-this-is-the-best-electoral-structure-we-have-had-in-16-years)

 

Spanish government summons Venezuelan ambassador to Madrid

The Spanish Ministry of Foreign Affairs has called in Venezuela´s ambassador to Spain Mario Ricardo Isea to present a formal complaint over recent remarks by President Nicolás Maduro against Spanish Head of Government Mariano Rajoy, whom Maduro "has labeled by publicly and repeatedly as an assassin". Back in April, Madrid also summoned Ambassador Isea following President Maduro's statements accusing Rajoy of being a "racist." Spain described those remarks as "intolerable." (El Universal, http://www.eluniversal.com/nacional-y-politica/150727/spanish-govt-summons-venezuelan-ambassador-to-madrid)

 

US blacklists Venezuela for human trafficking for the second time

For the second year in a row, the United States Department of State kept Venezuela on its blacklist of trafficking in persons, by considering that Caracas has no met the minimal standards and does not engage in "significant efforts" to fight this crime. Venezuela joins Russia, Thailand, Libya, Algeria, Syria, Yemen, North Korea, and other 16 countries on the lowest ranking, "tier 3," according to the assessment conducted by the US Department of State. (El Universal, http://www.eluniversal.com/nacional-y-politica/150727/us-blacklists-venezuela-for-human-trafficking-for-the-second-time)

 

The US calls for peaceful settlement of Venezuela-Guyana dispute

The United States government says it is "imperative" that the territorial dispute between Venezuela and Guyana be settled in a "peaceful" manner and in compliance with international law. A US Department of State spokesperson, who asked not to be named, explained that any effort to solve that border dispute had to be undertaken through peaceful measures consistent with international law, either through the United Nation process or any other mechanisms. (El Universal, http://www.eluniversal.com/nacional-y-politica/150727/the-us-calls-for-peaceful-settlement-of-venezuela-guyana-dispute)

 

Maduro to meet with UN Secretary General Ban Ki Moon over Guyana dispute

President Nicolás Maduro plans to travel to New York to meet with UN Secretary General Ban Ki Moon over what his government calls Guyanese "aggressions" in the Essequibo disputed territory. More in Spanish: (AVN; http://www.avn.info.ve/contenido/presidente-maduro-sostendr%C3%A1-reuni%C3%B3n-especial-secretario-general-onu; El Universal, http://www.eluniversal.com/nacional-y-politica/150728/maduro-viaja-a-la-onu-para-exponer-litigio-con-guyana)

 

 

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 27, 2015

International Trade

 

Cargo that has arrived at Puerto Cabello

• Over 4,074 tons of beef, milk and coffee from Eskimo S.A., Centrolac S.A., Alba Alimentos Nicaragua, Compañía Hondureña del Café, Productos Lácteos La Perfecta, Ind. Comercial San Martín y Nova Terra for state agencies Café Venezuela y Corporación de Abastecimiento y Servicios Agrícolas (CASA)
• Over 1,134 tons of milk and coffee from Colombia for state agencies Café Venezuela y Corporación de Abastecimiento y Servicios Agrícolas (CASA)
• Shampoo, diapers, wipes and sanitary from Procter & Gamble for its subsidiary in Venezuela.

More in Spanish: (Notitarde; http://produccion.notitarde.com/La-Costa/Llegaron-a-Puerto-Cabello-mas-de-6-mil-toneladas-de-alimentos-2379118/2015/03/25/503145)

 

Selling crude to "Los Imperialistas"

Washington and Caracas have been engaging in tit-for-tat insults and sanctions over recent weeks, but the United States and Venezuela have a commercial relationship that Nicolás Maduro cannot afford to sever. The United States remains Venezuela’s leading supplier of goods by a large margin and the largest export market for its oil. That has led Maduro’s critics to question the president’s current round of Yankee-baiting. “If this government is so anti-imperialist, why do they continue selling oil to the U.S.?” opposition leader and Miranda state Governor Henrique Capriles Radonski. “They have a double discourse.” Venezuela continues to export a little less than 800,000 barrels of crude oil to the United States per day. Last year, the value of those oil exports totaled close to US$ 30.2 billion, according to the U.S. Census Bureau. Venezuela’s crude oil, which is heavy in sulfur, coke, and other minerals, can only be processed in a few refineries in the world, most of which are located in the United States. Meanwhile, U.S. exports to Venezuela came to US$ 11.3 billion in 2014 — more than a quarter of the country’s total imports. And Venezuelans import upwards of 70% of what they consume, including agricultural commodities, processed foods, and manufactured goods. So despite the rhetoric, analysts say he is looking for a distraction from his own country’s economic woes. Risa Grais-Targow, an analyst with Eurasia Group, notes that Maduro’s vociferous anti-American stance will have a short shelf-life unless he moves quickly to resolve the country’s problems. (Foreign Policy, http://foreignpolicy.com/2015/03/24/selling-crude-to-los-imeperialistas-maduro-washington/)

 

Government reports it quadrupled toilet paper imports last year

According to the annual report by the Trade Ministry, the CASA state agency imported and distributed 80 million rolls of toilet paper, 320.5% more than it did in 2013. Tooth paste imports rose more than 2000%. More in Spanish: (El Nacional; http://www.el-nacional.com/)

 

 

Logistics & Transport

 

Failure to pay shipping lines to affect supplies to the country

Venezuela joined the list of high-risk destinations for major foreign shipping lines serving the country, because the government did not acknowledge the debt of over US$ 800 million it has with these companies and breached agreements established in the contracts. The situation compromises the arrival of imported goods and the supply of shelves. Shippers that have remained provide the service "with great sacrifice," but without notice can take action and suspend the freight. The debt with shipping corresponds to three-year delay in the return of more than 4,000 containers that PDVSA, CASA, AGROPATRIA and other state companies have in their possession. The source alleged that public companies have engaged in misappropriation of assets. "We found converted into offices for Chinese companies containers and when we follow up to determine their origin, we find, for example, that were given to CASA food". The nonpayment of commitment can you get to also generate legal action if unable to reach a commercial agreement, warned: "These international agreements have been established with freight carriers worldwide. The government cannot ignore them or pay what you think and when you want." He warned that part of local expenditures previously billed in bolivars be charged in dollars. "Now 98% of the costs for the landfall of a vessel is charged in dollars. Before it was 30%".  More in Spanish: (El Nacional; http://www.el-nacional.com/)

 

Alitalia cuts down to one flight Caracas-Rome

Contrary to previous reports that it was ending all operations here, ALITALIA has clarified that it will operate a single Caracas-Rome flight. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/alitalia-operara-un-solo-vuelo-en-la-ruta-caracas-.aspx#ixzz3VZmGjnow)

 

 

Oil & Energy

 

Venezuela has cut oil exports to Cuba and the Caribbean in half

According to a report by Barclays, Venezuela has cut subsidized oil dispatches to Cuba and PETROCARIBE member countries by half, down to around 200,000 BPD from 400,000 BPD in 2012. Due to these cuts, Barclays has cut its FOREX deficit for Venezuela to US$ 22.6 billion, down from US$ 30 billion it has predicted for 2015. "Cuba has received around 55,000 BPD since September, almost half of what it got in 2012", according to the report. Dispatches to the Dominican Republic and Jamaica, which comprise around half of the program, have dropped 56% and 74% respectively, from 2012. These cuts bring down crude shipments to allies to only 80,000 BPD that are not paid for in cash, and this improves the nation's finances by around US$ 7.5 billion, says the report, which adds: "We estimate the government can get financing for US$ 17.5 billion, which means their asset holdings will have to drop by some US$ 6.3 billion to close the gap". More in Spanish: (El Nuevo Herald, http://www.elnuevoherald.com/noticias/mundo/america-latina/venezuela-es/article16310159.html)

 

Venezuela again seeks to challenge arbitrators in CONOCO dispute

Venezuela is seeking to challenge two arbitrators on a World Bank tribunal hearing in a dispute with U.S. oil giant ConocoPhillips, less than a year after the tribunal rejected a similar request regarding the same arbitrators. The Oil Ministry says it has asked the International Center for Settlement of Investment Disputes (ICSID) to remove arbitrators Kenneth Keith and Yves Fortier from the three-person panel. Both had shown "a marked attitude against the Republic," the ministry said in a statement. (Reuters, http://www.reuters.com/article/2015/03/26/venezuela-arbitration-conocophillips-idUSL2N0WS2IV20150326)

 

PETROVIETNAM mulls leaving Venezuela joint venture

Vietnam's state oil and gas group PETROVIETNAM is considering selling its 40% stake in a joint venture with Venezuelan counterpart Petroleos de Venezuela (PDVSA), according to two sources close to the exploration project PVN's investment in the Junin 2 venture in Venezuela's heavy-crude Orinoco belt had been initially cost US$ 1.8 billion over five years, making it one of Vietnam's biggest overseas investment projects. But a senior source in PDVSA said the Vietnamese company - long rumored to be unhappy over Venezuela's high inflation and currency controls - was now considering a definitive pullout. Another source close to the PETROMACAREO project confirmed that and also said a Colombian company was interested in buying PETROVIETNAM's stake. That source did not name the Colombian company. The exit of PETROVIETNAM would be a further disappointment for Maduro's government after Malaysian oil company PETRONAS also decided to exit the flagship PETROCARABOBO project in the Orinoco belt in 2013, due to problems in its dealings with Venezuelan authorities and PDVSA. (Reuters, http://www.reuters.com/article/2015/03/25/venezuela-petrovietnam-idUSL2N0WR12C20150325)

 

 

Commodities

 

Industrial inventories at a critical level

Eduardo Garmendia, president of CONINDUSTRIA, the nation's industry federation, reports inventories are at a "critical" level in the entire industrial area, "including pharmaceuticals and food".  More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/conindustria-el-volumen-de-inventarios-es-critico-.aspx#ixzz3VZn1qUn1; El Mundo, http://www.elmundo.com.ve/noticias/economia/gremios/conindustria--el-volumen-de-inventarios-es-critico.aspx)

 

Cattle ranchers believe they can increase their production by 7%, between May and October, to supply up to 45% of the domestic demand, says FEDENAGA’s Chief Carlos Albornoz. They claim they could increase the numbers if they are guaranteed profitability. Albornoz emphasized the lack of trust and stimuli to the producer are the main obstacles for them to produce. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43281&idc=3)

 

 

Economy & Finance

 

Economy- outlook worsens   

Venezuela’s economy – already hammered by widespread shortages, declining activity and spiraling inflation – is set to get even worse, experts say. And even if the country's president, Nicolas Maduro, takes the correct measures to fix the falling economy, they will fail because of the government’s lack of credibility, they say. “2015 and 2016 will go down as the worst years in Venezuela's modern history,” says Moisés Naim, a distinguished fellow at the Carnegie Endowment for International Peace and a former Venezuelan minister of trade and industry in the early 1990s. "Hunger, crime, strife and widespread human suffering will reach levels not seen before and will disproportionately affect the poorest and most vulnerable groups of society -- children, women, the elderly and the sick.” "Unfortunately, there is no such thing as “bottom” for nations’ economies," argues Gerver Torres, Latin America Specialist at Gallup Consulting and former Minister President of Venezuela’s Investment Fund. “Things can always get worse, and I expect that result in Venezuela,” he says. (Latinvex, http://www.latinvex.com/app/article.aspx?id=1986)

 

Venezuela faces a US$23.7 billion dollar déficit this year and US$15.2 billion in 2016 before counting potentials (…) such as pre-payment of the PETROCARIBE’s debt, securitization of some of the gold reserves and up to US$ 10 billion of Chinese financing, said Credit Suisse on Latin America’s economic outlook. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43275&idc=2; and more in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/banca/credit-suisse--venezuela-enfrenta-un-deficit-de-di.aspx#ixzz3VU7VXXcF)

 

Venezuelan seeks ECLAC support economic plans

Alicia Bárcena, Executive Secretary of the UN's Economic Commission for Latin America and the Caribbean (ECLAC) met here with Venezuelan officials. After the meeting President Nicolás Maduro said:  "I have asked ECLAC and their executive secretary to support us with all they have so that can Venezuela can revive economic growth." More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/cepal-dara-apoyo-a-venezuela-para-consolidar-su-ec.aspx#ixzz3VZmlAjGb; El Mundo, http://www.elmundo.com.ve/noticias/economia/internacional/equipo-de-la-cepal-visitara-al-pais-para-brindar-r.aspx; El Universal, http://www.eluniversal.com/nacional-y-politica/150327/cepal-dara-apoyo-al-equipo-economico-del-gobierno; AVN; http://www.avn.info.ve/contenido/cepal-apoyar%C3%A1-venezuela-consolidaci%C3%B3n-econom%C3%ADa-productiva)

 

 

Politics and International Affairs

 

Maduro's popularity inches up to 25%

President Nicolas Maduro's popularity inched up to 25% percent in March, according to leading local pollster DATANALISIS, after the United States declared Venezuela a security threat and ordered sanctions against seven officials. The measures from Washington provided an unlikely helping hand to the socialist leader at one of the worst moments for the ruling "chavismo" movement. "In the last four surveys, Maduro's popularity has been stable, it hasn't fallen further," DATANALISIS added. The firm also said the scarcity index, a measure of shortages of staple goods, hit 57% in Caracas this month. (Reuters, http://www.reuters.com/article/2015/03/24/us-venezuela-maduro-idUSKBN0MK2B420150324)

 

Prosecutor General says social media must be regulated, disqualifies Amnesty International

Prosecutor General Luisa Ortega Díaz has said social media must be regulated to avoid negative rumors. She also called a recent report on human rights violations here unethical and slanted. More in Spanish: El Nacional; http://www.el-nacional.com/)

 

...and says she is investigating Venezuelan accounts abroad

Prosecutor General Luisa Ortega Díaz announced she is asking - through the Foreign Ministry - for information on Venezuelans holding accounts in foreign banks. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/150325/fiscalia-investiga-cuentas-de-venezolanos-en-el-exterior; El Nacional; http://www.el-nacional.com/)

 

Regime claims to have collected three million anti-Obama signatures, foes denounce coercion

The government claims it has collected over three million signatures asking U.S. President Barack Obama to repeal measures declaring this country a security threat. Public squares around the nation have become centers for a nationalist petition drive by the ruling Socialist Party. PROVEA, a local NGO, has already received several complaints about public employees being required to sign, backed by the threat of being sanctioned in case they refuse to do so. These are signs that the campaign being carried out by the Venezuelan government throughout the public media system is not having the desired effect. A significant percentage of Venezuelans does not buy the story that the "gringos" will be invading the country any time soon. In a communiqué, Venezuelan opposition umbrella group Unified Democratic Panel (MUD) rejected the fact that the Venezuelan government, through its embassies and consular offices, is inviting Venezuelan residents abroad to sign the petition. Servando Carbone, national coordinator for Unete, adds that "National Guard, Army and Navy commandos ordered batallions to sign and are pressuring workers at the Ministry of Defense to sign". Prisoners have also been bused to sign. (Reuters, http://www.reuters.com/article/2015/03/25/us-venezuela-usa-idUSKBN0ML2GX20150325; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2380990&CategoryId=10717; El Universal, http://www.eluniversal.com/nacional-y-politica/150325/mud-rejects-call-for-venezuelans-abroad-to-sign-letter-against-us-decr; and more in Spanish: El Nacional; http://www.el-nacional.com/)

 

Ceballos remains incarcerated despite court order

Judge Shirley Páez ordered the release of former San Cristóbal’s Mayor Daniel Ceballos after he served the 12 month sentence imposed by the Venezuelan Supreme Court for failing to comply with one of its rulings. However, Ceballos was not released from prison as he is on trial in another court on charges of rebellion. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43282&idc=1)

 

Colombian FM expects Red Cross to visit political prisoners in Venezuela

Colombian Foreign Minister María Angela Holguín says Member States of the Union of South American Nations (UNASUR) expect the International Committee of the Red Cross (ICRC) to be allowed to visit political prisoners in Venezuela. "We expect the ICRC (...) to visit (political) prisoners in Venezuela," Holguín stressed without specifying any date, AFP quoted. (El Universal, http://www.eluniversal.com/nacional-y-politica/150326/colombian-fm-expects-red-cross-to-visit-political-prisoners-in-venezue)

 

Costa Rica has removed Ambassador to Venezuela

Costa Rican President Luis Guillermo Solís has removed his Ambassador to Venezuela Federico Picado, after the diplomat expressed opinions about the internal political affairs of this nation. Solís had said his government did not endorse Picado's statements in support of the government of President Maduro. (El Universal, http://www.eluniversal.com/nacional-y-politica/150326/costa-rica-removes-ambassador-to-venezuela)

 

Spain rules out possibility that González harms relations with Venezuela

The Spanish Secretary of State for International Cooperation and for Ibero-America, Jesús Gracia, ruled out the possibility that the initiative of former Spanish president Felipe González to defend Venezuelan detained opposition leaders Leopoldo López and Antonio Ledezma might harm Spain's relations with Venezuela. Gracia stressed that González made clear from the beginning that his initiative of defending Venezuelan dissenters was private, with a goal to promote understanding in Venezuela, and therefore bilateral relations would not be damaged in any way, Efe reported. (El Universal, http://www.eluniversal.com/nacional-y-politica/150326/spain-rules-out-possibility-that-gonzalez-harms-relations-with-venezue)

 

Russian FM: "Venezuelans must solve problems without foreign meddling"

Russian Foreign Minister Sergei Lavrov said Venezuela is able to resolve its problems without foreign meddling: "We are convinced that Venezuelans must solve their problems on their own, without foreign interventions, sanctions or threats". (El Universal, http://www.eluniversal.com/nacional-y-politica/150325/russian-fm-venezuelans-must-solve-problems-without-foreign-meddling)

 

 

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.