November 06th, 2012

Economics & Finance

Chávez says Venezuela's foreign indebtedness is only 25% of GDP, and points out that US foreign indebtedness is 300%. More in Spanish: (AVN, 11-06-2012; http://www.avn.info.ve/contenido/chávez-deuda-externa-venezuela-apenas-llega-al-25-sobre-producto-interno-bruto)

"Public and private enterprises working jointly are one way to build socialism", according to President Chavez, who added: "Venezuelan socialism includes all: professionals, media, businessmen. Do not listen to those crying wolf, I call upon all to work with us as many already are." More in Spanish: (AVN, 11-06-2012; http://www.avn.info.ve/contenido/quottrabajo-conjunto-entre-empresa-pública-y-privada-es-una-vía-para-construcción-del-soci)

SITME transactions rose by 56%, as CADIVI operations remain stagnant

According to the Síntesis Financiera publication, CADIVI approved U$D 22.9 in foreign exchange operations, only 4.6% above the same time frame in 2011; wile SITME approved U$D 6.8 billion, rising by 56%. This trend indicates imports are moving toward the SITME system, which uses VEB 5.30 to the U$D as a reference. More in Spanish: (El Universal, 11-06-2012; http://www.eluniversal.com/economia/121106/56-subieron-aprobaciones-de-divisas-por-medio-del-sitme)

Formal employment slowing down in Venezuela, according to the Labor Situation Report for Latin America and the Caribbean, prepared jointly by the UN Commission for Latin America and the International Labor Organization. The report shows a slight drop in formal employment during the first half of 2012. More in Spanish: (El Universal, 11-06-2012; http://www.eluniversal.com/economia/121106/reportan-desaceleracion-de-empleos-formales-en-el-pais)

Commodities

Gasoline imports from the US jump to 34,000 bpd in August

Data released by the US Department of Energy shows that Venezuela purchased gasoline made in the US consistently from December 2011 through August 2012. March was the only exception. Most recent information from August this year, indicates that the US dispatched 34,000 gasoline barrels per day to Venezuela in that month. It was the highest figure since February 2003, when Venezuela imported 36,000 barrels of gasoline from the US amid a temporary halt in the operations of the oil industry caused by a national civic strike. (El Universal, 11-05-2012; http://www.eluniversal.com/economia/121105/venezuelas-gasoline-imports-from-the-us-jumps-to-34000-bpd-in-august)

Fuel imports from Colombia rose by 91% this year, according to Colombia's National Statistics Department (DANE), which indicates Venezuela imported U$D 402.5 million in fuel this year, and are the top trade item between both countries.  Venezuela also imported U$D 214 million in animal stock and related products, and U$D 199 million in chemicals. More in Spanish: (El Universal, 11-06-2012; http://www.eluniversal.com/economia/121106/aumento-91-compra-de-combustibles-a-colombia)

PDVSA also comes up empty off Cuba

A well drilled by state oil giant PDVSA in Cuban waters of the Gulf of Mexico also has turned up dry, the Communist-ruled island’s official media reported Friday. This latest well, drilled with the Chinese-built Scarabeo 9 rig, “offers no possibility for commercial development,” the press reported Friday, citing a statement by Cuban state oil firm CUBAPETROLEO. (Latin American Herald Tribune, 11-02-2012; http://www.laht.com/article.asp?ArticleId=626006&CategoryId=10717;

Veneconomy, 11-04-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=32656&idc=4)

TNK-BP production up in Venezuela

Russian energy company TNK-BP said oil production from its joint venture in Venezuela increased 18% during the first nine months of the year. PETROMONAGAS, a joint venture between TNK-BP and Venezuelan state energy company Petroleos de Venezuela, or PDVSA, was 35.5 million barrels through September, an 18% increase from the same time last year. Boris Zilbermints, a vice president for international projects at TNK-BP, said Venezuela is key to the company's overseas portfolio. (UPI, 11-01-2012; http://www.upi.com/Business_News/Energy-Resources/2012/11/01/TNK-BP-production-up-in-Venezuela/UPI-48151351768587/)

Aluminum industry operates at 29% capacity

Primary aluminum output in Guayana, south Venezuela, continues to dwindle. Aluminum makers Venalum and CVG Alcasa comprise 1,301 cells, yet only 387 cells are operative. Both companies are running at 29% of their installed capacity. Operating problems are due to unsolved shortages of spare parts and raw material. Moreover, nearly 40% of personnel is absent amid poor transportation. In CVG Alcasa, low availability of cranes is accountable for production decline. (El Universal, 11-05-2012; http://www.eluniversal.com/economia/121105/venezuelas-aluminum-industry-operates-at-29-of-capacity)

Steel and cement to be imported by "socialist" builders, says Gerson Hernández, head of the Bolivarian Construction Chamber, who indicated housing projects for next year require additional inputs. He indicated negotiations are under way to import 180 thousand metric tons of steel and 100 thousand metric tons of cement from countries such as Argentina, Perú and Italy. More in Spanish: (El Universal, 11-06-2012; http://www.eluniversal.com/economia/121106/las-constructoras-socialistas-importaran-acero-y-cemento; El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/camara-bolivariana-de-constructores-preve-edificar.aspx)

Agricultural imports rose 99.6% in one year, according to the National Statistics Institute (INE), which indicated purchases abroad in these items rose to U$D 2.533 billion during the first semester this year, up from U$D 1.269 billion during the first semester 2011. More in Spanish: (El Universal, 11-06-2012; http://www.eluniversal.com/economia/121106/importaciones-del-sector-agricola-crecieron-996-en-un-ano; El Nacional; http://www.el-nacional.com/)

International Trade

"MERCOSUR is a way to increase trade with Northern Brazil", according to President Chavez, who says the area has a population above 60 million, and "of incalculable potential for trade and the development of Venezuela and Brazil". More in Spanish: (AVN, 11-06-2012; http://www.avn.info.ve/contenido/misión-mercosur-amplía-perspectivas-crecimiento-países-región)

Imports from Colombia up 70% in January-August

Venezuela-Colombia bilateral trade has been reactivated, clearly benefiting Colombian entrepreneurs in view of the rapid rise of sales to Venezuela. Data handled by the National Administrative Statistics Department of Colombia (DANE) shows that from January through August this year, Venezuela purchased U$D 1.77 billion in goods from Colombia, that is, 70% above the figure recorded during the same period in 2011 (U$D 1.04 billion). Meanwhile, Venezuelan exports to Colombia are growing at a much slower pace, reporting only a 12.3% increase from January through August 2012. (El Universal, 11-05-2012; http://www.eluniversal.com/economia/121105/venezuelan-imports-from-colombia-up-70-in-january-august)

Logistics & Transport

Incoming cargo processing can take 20 to 30 days due to excessive controls, according to Cipriana Ramos, president of Fedecámaras in Vargas state. She said controls applied by CADIVI, SENIAT, sanitary authorities, the National Guard, Customs and the Agriculture Health Institute also bring on added cost. She says that at La Guaira Port the waiting period can go up to around 30 days. More in Spanish: (Notitarde, 11-06-2012; http://www.notitarde.com/La-Costa/Excesivos-controles-portuarios/2012/11/05/143854; El Carabobeño, http://www.el-carabobeno.com/impreso/articulo/37990/arribo-masivo-de-cargas-graneleras--a-puerto-cabello-agudiza-retrasos)

Politics

A victory by Obama or Romney will not bring change in bilateral relations, says President Chavez who also saluted the Sandinista victory in municipal elections in Nicaragua. More in Spanish: (El Universal, 11-06-2012; http://www.eluniversal.com/internacional/121106/para-chavez-victoria-de-obama-o-romney-no-traera-cambios)

October 30th, 2012

Economics & Finance

Government plans to relax exchange controls, calls for higher tax collection

Planning and Finance Minister Jorge Giordani says exchange controls will remain, but with some modifications since he believes controls are "absolutely necessary" within Venezuela's economy. He also called for fiscal reform, saying domestic taxes are only 12% of that should be collected due to evasion, overpricing exports, manipulating foreign exchange and speculation. More in Spanish: (Últimas Noticias, 10-29-2012; http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/gobierno-preve-flexibilizar--el-control-de-cambio.aspx; Infolatam, 10-29-2012)

Giordani: Inflation will be fought with more production

The government is committed to increase production of tomatoes, potatoes, onions and paprika, in order to meet the inflation target for 2013, says Minister of Planning and Finance, Jorge Giordani. He said Venezuela can be self-sufficient in these areas "that lead to higher prices." More in Spanish: (El Mundo, 10-29-2012; http://www.elmundo.com.ve/noticias/economia/politicas-publicas/giordani--la-inflacion-se-combatira-con-mas-produc.aspx)

Venezuela's food basket hits USD 427.64 in September

The average price of the standard food basket in Venezuela amounted to VEB 1,881.96 (USD 427.67) in September 2012, according to a report prepared by the National Institute of Statistics (INE).

The figure represents a 2.5% increase compared to August, when the food basket price amounted to VEB 1,835.25 (USD 417.38). (El Universal, 10-29-2012; http://www.eluniversal.com/economia/121029/venezuelas-food-basket-hits-usd-42764-in-september)

Socialist plan calls for creating 450 communes per year

The communal State is under construction. You can feel it in communities. The Government's plan, presented by President Hugo Chávez sets the goal of "consolidating and supporting the people's power during 2013-2019, which will lead to the creation of 3,000 socialist communes, 450 communes per year, based on the demographic characteristics of the country's territorial development axis. (El Universal, 10-29-2012; http://www.eluniversal.com/economia/121029/socialist-plan-provides-for-creation-of-450-communes-per-year; http://www.eluniversal.com/economia/121029/venezuelas-public-spending-to-underpin-the-socialist-model-in-2013)

Giordani presents his arguments against devaluating the bolivar

In a recent interview, Planning and Finance Minister Jorge Giordani proposed seven reasons for not devaluating Venezuela's currency, he said: 1) Currency needs are being met by SITME and CADIVI; 2) we have a flourishing economy; 3) we do not need dollar denominated bonds, there is no need to pay 13% abroad; 4) we are applying planned indebtedness since early this year; 5) China provides funding at rates under 13%; 6) many foodstuffs can be produced domestically to abate inflation; 7) as to food imports - we can change consumer preferences. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/8-razones-que-da-el-ministro-giordani-para-no-deva.aspx)

Commodities

Growing doubts two months after explosion in Amuay refinery

More than 60 days have passed since the explosion resulting from a gas leak in Amuay refinery (northwestern Falcón state). The blast caused more than 40 deaths, six people missing, hundreds of injured, and damages in hundreds of dwellings and stores neighboring the refinery that belongs to state-run oil company Petróleos de Venezuela (Pdvsa) and is part of the Paraguaná Refining Center (CRP). To date, no official findings have been revealed concerning the causes of the gas leak that devastated the surroundings of Amuay refinery, including a detachment of the National Guard, the enterprise Puramin, and several stores, dwellings and buildings. (El Universal, 10-27-2012; http://www.eluniversal.com/economia/121027/growing-doubts-two-months-after-explosion-in-amuay-refinery)

Venezuela claims the EXXON lawsuit undermines trust in international arbitration

Venezuela's defense team at ICSID claimed, "The fact that the plaintiffs are well-known US companies that have managed to manipulate the international arbitration system by pretending to be Dutch companies, undermines the trust that we may feel towards international arbitration". (El Universal, 10-27-2012; http://www.eluniversal.com/economia/121027/venezuela-claims-that-exxon-lawsuit-seeks-its-ruin)

Electricity generation said to be reaching 20,000 MW

Electric Energy Minister Héctor Navarro says electricity generation has risen by almost 5,000 MW since the 2009 crisis and is not reaching 20,000 MW. More in Spanish: (AVN, 10-30-2012; http://www.avn.info.ve/contenido/generación-eléctrica-nacional-se-ubica-casi-20000-megavatios; http://www.avn.info.ve/contenido/ministerio-energía-eléctrica-cumple-tres-años-grandes-inversiones-curso)

International Trade

Turkey interested in Venezuelan oil

Turkey's ambassador to Caracas, Muhsin Tugrul Kiliçaslan, says a bilateral Energy Cooperation Agreement has been recently signed between Turkey and Venezuela, under which Venezuela sends oil to Turkey in exchange for the construction of dwellings. "We started the cooperation in the construction sector. It is a win-win situation for both parties. You (Venezuela) need construction and we (Turkey) are very good at it and we require oil," the ambassador remarked. (El Universal, 10-29-2012; http://www.eluniversal.com/economia/121029/turkey-interested-in-venezuelan-oil)

Logistics & Transport

Vessels waiting to enter port increased, government vows to improve operations

The weekend closed with 33 ships waiting at bay to enter the port of Puerto Cabello. Members of the maritime community need to double work shifts in order to speed up paperwork; and the state-run port authority, BOLIPUERTOS, says it will set up joint committees with shippers in order to improve operations in Venezuelan ports, after meeting with shipping line representatives. "New work commissions will be set up in order to tackle and propose mechanisms for further approach between ports and its users, with the purpose of improving port operations and boosting economic development." (El Universal, 10-29-2012; http://www.eluniversal.com/economia/121029/venezuelan-government-vows-to-improve-ports-operations; and more in Spanish: El Carabobeño, 10-29-2012; http://www.el-carabobeno.com/impreso/articulo/37028/-cifra-de-buques-en-espera-de-ingreso-al-puerto-aument-y-se-ubic-en-33)

A new passengers’ gangway will go into operation at Maiquetía, according to Maiquetía International Airport Institute (IAIM, in Spanish) General Director Luis Gustavo Graterol, who said tests had begun with a Boeing 757-200 plane last October 10. (Veneconomy, 10-29-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=32568&idc=3)

Politics

Controversial Defense Minister suddenly replaced, nominated for Governor of Trujillo

In a surprise last minute move President Chavez replaced his Defense Minister, General Henry Rangel Silva, who has repeatedly been associated with drug trafficking complicity, and named him a candidate for Governor of the state of Trujillo, one of the poorest and smallest in the nation. Incumbent Governor and government party candidate Hugo Cabezas hurriedly withdrew his nomination. Rangel Silva served as Defense Minister since January this year and has been quickly replaced with Navy Chief, Admiral Diego Molero. More in Spanish: (AVN, 10-30-2012; http://www.avn.info.ve/contenido/chávez-designa-almirante-diego-molero-como-nuevo-ministro-para-defensa; El Universal, http://www.eluniversal.com/nacional-y-politica/121030/rangel-silva-pasa-de-ministro-de-defensa-a-candidato-en-trujillo)

Election Board allows pro government candidates to register after process was closed

The United Democratic Opposition is calling for the Elections Board to withdraw a decision to allow 7 pro government gubernatorial candidates, and 101 other citizens to register in different states long after the registration process was closed. Pro Government Board member Hernández has called the decision an exceptional situation with insignificant impact, but opposition representatives say it is illegal and will appeal to the Supreme Court, as well as the Organization of American States and MERCOSUR. (El Universal, 10-29-2012; http://www.eluniversal.com/nacional-y-politica/121029/former-electoral-body-member-requests-nullification-of-relocations; and more in Spanish: El Nacional; http://www.el-nacional.com/)

Government is willing to evaluate the cases of the 14 political prisoners, says attorney Gonzalo Himiob. He explained the government has asked legal reports indicating which legal benefits correspond to each of the prisoners, under the Constitution and laws. Of the 14, nine already qualify for parole, which has been repeatedly turned down by the courts. (Veneconomy, 10-29-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=32570&idc=3)

September 04, 2012

Economics & Finance

Official dollar holdings abroad drop

According to Central Bank reports the Government is reducing the amount of dollars it has abroad in order to keep up public spending amid the election campaign. Deposits abroad have gone down U$D 9.148 billion, from U$D 40.819 billion to U$D 31.671 billion. According to the ECOANALITICA firm this is a bad sign: "In an economy such as Venezuela's, that is vulnerable to oil prices and accelerated foreign debt, the balance of this account is of special interest to analysts, business and government itself."  More in Spanish: (El Universal; http://www.eluniversal.com/economia/120904/ejecutivo-reduce-dolares-colocados-en-el-exterior)

Commodities

State oil company's investments in welfare double those in oil refining

Since the beginning of the oil boom in 2004, state-run oil company PDVSA has been meeting a number of obligations, as it is forced to allocate a great part of its revenue into non-related activities. Company reports and accounts show that between 2007-2011 funds spent for social development, not including contributions to the National Development Fund (FONDEN) doubled the amount of investment made in oil refining. Whereas U$D 24.3 billion went to social programs and production projects, only U$D 11.8 billion have been invested in oil refining. (El Universal, 09-03-2012; http://www.eluniversal.com/economia/120903/state-oil-companys-investments-in-welfare-double-those-in-oil-refining)

Amuay Refinery processing 264,000 BPD

Energy and Mining Minister Rafael Ramírez claims that the Amuay Refinery - which caught fire after an explosion on August 25th - is now processing up to 264,000 barrels per day, from Units 2,3 and 4. He also says 65 cisterns loaded with asphalt were dispatched yesterday from the plant. (Veneconomy, 09-03-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=31927&idc=4; AVN, http://www.avn.info.ve/node/130403 and more in Spanish: El Universal; http://www.eluniversal.com/economia/120904/refineria-de-amuay-ya-esta-procesando-264-mil-barriles-diarios; El Mundo, http://www.elmundo.com.ve/noticias/petroleo/pdvsa/ramirez-ubica-el-procesamiento-de-refineria-amuay-.aspx)

Venezuela says it’s looking at everything in refinery blast

Venezuela’s government has not ruled out any theory in the investigation into the Aug. 25 explosion at the Amuay refinery that killed 42 people, but “there’s no way” that the proper maintenance was neglected, claims Energy and Mines Minister Rafael Ramirez. “We cannot rule out any hypothesis. We’re working on the basis that we need to clarify ... the origin of this situation,” he said. “However, there are things that can be ruled out,” the minister said. (Latin American Herald Tribune, 09-02-2012; http://www.laht.com/article.asp?ArticleId=568498&CategoryId=10717)

Logistics & Transport

Resources allocated for river transportation company

President Hugo Chavez has approved VEB 220 million to create a new river transportation company with four routes on the Apure and Orinoco rivers, in the plains." (AVN; 09-02-2012; http://www.avn.info.ve/node/130513)

CADIVI has allocated U$D 998.62 million for airline operations

The Currency Board says it has allocated over U$D 998.62 million to national and international airlines, according to Marisela de Loaiza, a representative for the International Air Transport Association. More in Spanish: (El Nacional; http://www.el-nacional.com/)

Politics

Over 10% of voters took part in practice balloting

More than 10% of voters participated in a mock election last Sunday, according to Socorro Hernández, a director at the National Elections Council (CNE). She said that 99% of the transmitted data had been processed by 8:00 PM, and that results would not be released as it had not been called for in this the simulated balloting. (El Universal, 09-03-2012; http://www.eluniversal.com/nacional-y-politica/120903/over-10-of-voters-take-part-in-venezuelan-mock-election; http://www.eluniversal.com/nacional-y-politica/120903/proselytism-takes-hold-at-venezuelan-election)

Venezuela coordinated contacts between the FARC and Bogota

Preliminary contacts between the Colombian government of President Juan Manuel Santos and the guerrillas of the Revolutionary Armed Forces of Colombia (FARC), in order to prepare a negotiating agenda, were conducted in Venezuela and Cuba, according to Colombian press sources. According to the newspaper El Tiempo of Bogota, a meeting was met in the city of Barinas "with the help" of President Hugo Chavez, and in Havana there were about ten meetings with the support of Raúl Castro, AFP quoted. More in Spanish: (El Universal, 09-03-2012; http://www.eluniversal.com/internacional/120903/venezuela-coordino-contactos-entre-las-farc-y-bogota)

Chávez vows to keep exchange controls, Capriles seeks to create investor confidence

Although the point has not been in his election platform, President Chavez has repeatedly said that if he remains in office exchange controls will become a fixture, and on May 20, 2005 he said these controls were not transitory but rather a key instrument in the Government's economic strategy. More in Spanish: (El Universal; http://www.eluniversal.com/economia/120904/en-1983-se-perdio-la-brujula-cambiaria-chavez-ofrece-mantener-el-contr)

NEWSWEEK Report: Henrique Capriles Radonski: The Guy Gunning for Chavez

If elections were simply endurance contests, Venezuela’s Oct. 7 presidential contest would be a romp. Young, hyperactive, and these days sweating, Henrique Capriles Radonski of the opposition coalition has turned the race in this oil-rich, politically vertiginous South American nation into a political version of the Ironman Triathlon. Juiced by opinion polls that show him gaining on incumbent Hugo Chávez, the governor has been tearing around Venezuela to make his case. Covering several towns in a day, his stamina is politico-athletic as he addresses crowds, greets press, and shoots hoops with the kids. More: (The Daily Beast, 09-02-2012; http://www.thedailybeast.com/newsweek/2012/09/02/henrique-capriles-radonski.html)

May 01st, 2012

Economics & Finance

Government priorities trump currency allocation

Even though the Ministry of Petroleum and Mining reports on a weekly basis that the Venezuelan oil basket is sold at prices in excess of USD 100 per barrel, the market is subject to changes in the allocation of currency by the official sector. Last April 20, the president of the Currency Administration Commission (Cadivi), Manuel Barroso, explained certain aspects about the new currency allocation priorities for eight academic areas.

He pointed out that, based on the Millennium Goals and the Socialist Plan for the Nation, the government set academic priorities benefiting from the exchange rate of Bs 4.3 per US dollar. He clarified that this move does not mean that anyone desiring to study other areas may not have access to currency as there are other options, like the Transaction System for Foreign Currency Denominated Securities (Sitme), which involves the purchase of bonds at an exchange rate of Bs 5.3 per US. The medicine sector was also notified of the "temporary" measure for priority allocation of currency for 121 active principles over any other of its kind, according to members of that sector. (El Universal, 04-28-2012; http://www.eluniversal.com/economia/120428/government-priorities-trump-currency-allocation)

Fitch says opaque off-budget spending weighs on Venezuela's creditworthiness

According to a special report published today by Fitch Ratings, the growth in off-budget spending has decreased the transparency of Venezuela's public and external accounts and increased their discretionary character. Information on these funds' balances, quality of investments and cash flows is limited, thus increasing the challenges to assess the sovereign's actual financial strengths and vulnerabilities. In addition, 'the policy choice of transferring an increasing share of the oil windfall to opaque and highly discretionary mechanisms has resulted in a visible deterioration in Venezuela's external and fiscal credit metrics in spite of exceptional oil prices,' said Erich Arispe, Director in Fitch's Latin America Sovereigns Group. (Reuters, 04-30-2012; http://www.reuters.com/article/2012/04/30/idUSWNA614720120430)

PDVSA bond rally sends yield on 2015 note to record low

The yield on Petróleos de Venezuela SA bonds due in 2015 fell to the lowest since being issued in 2009 amid a rally in Venezuelan assets. The yield on the 5% bonds due in 2015 fell 53 basis points, or 0.53 percentage point, to 10.27% at 1:22 p.m. in Caracas, according to data compiled by Bloomberg. The bond’s price rose 1.38 cents to 84.86 cents on the dollar. The bonds are attractive because there’s little risk additional supply will create a glut, Raymond Zucaro, who helps manage about U$D230 million of emerging-market corporate debt at SW Asset Management LLC, said in a phone interview. (Bloomberg, 04-27-2012; http://www.bloomberg.com/news/2012-04-27/pdvsa-2015-bond-rally-sends-yields-to-record-low-caracas-mover.html)

Government authorizes USD 1.63 billion agricultural bond issue

The National Superintendence of Securities authorized an agricultural bond issue by the National Development Fund (Fonden) amounting to VEB 7 billion (USD 1.63 billion, at the official exchange rate of VEB 4.30 per US dollar).

The financial regulation agency said that the debt instruments will be due in 2015, 2016 and 2017, whereas the coupon of the bonds will be about 70% of the interest rate set for agricultural transactions.

The bonds will be purchased by the Venezuelan banks. In turn, the banks will provide funds for the agricultural portfolio. (El Universal, 04-30-2012; http://www.eluniversal.com/economia/120430/government-authorizes-usd-163-billion-agricultural-bond-issue)

Commodities

PDVSA and Chinese SINOHYDRO signed a framework cooperation agreement for the building of an industrial complex at the Carabobo area in the Orinoco Oil Belt, says the oil State company in a press release. The investments estimated for this oil and services complex have been estimated in U$D 4.5 billion. (Veneconomy, 04-30-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=30303&idc=4)

Catalytic cracking unit at Amuay restarted, PDSVA Says

Petróleos de Venezuela, S.A., the state oil company, restarted the catalytic cracking unit at the Amuay refinery in Falcon state following maintenance work that began in February, the company said today in an e-mailed statement.

The company also restarted treatment plants connected to the unit, which processes 108,000 barrels of oil a day and 64,000 barrels a day of gasoline, according to the statement. A catalytic unit at Amuay refinery broke down after attempts to restart an air compressor following programmed maintenance, Caracas-based newspaper El Universal reported April 26, citing union leader Ivan Freites. (Bloomberg, 04-28-2012; http://www.bloomberg.com/news/2012-04-28/catalytic-cracking-unit-at-amuay-restared-pdsva-says.html)

Reduced Venezuelan aluminum production forces authorities to adjust exports

The decline in aluminum production in industries located in the Guayana region has forced authorities to "adjust" aluminum supply quotas sold to multinational companies. Aluminum smelter CVG ALCASA's failure to deliver the product is long-standing and it is due to the industry's operational decline. In the case of smelter VENALUM, exports were reduced because of production has plummeted in recent weeks, and high levels of iron have been found in aluminum cylinders.  (El Universal, 04-30-2012; http://www.eluniversal.com/economia/120430/reduced-venezuelan-aluminum-production-forces-authorities-to-adjust-ex)

New power units operate inefficiently

Igor Gavidia, head of the National Center for Electric Power Delivery (CNDC), National Electricity Corporation (CORPOELEC), has admitted that several "important units" of the National Electricity System (SEN) have been hit by power failures. As a result, there have been several power outages. Meanwhile, energy experts have said that power generation in the northern region of the country does not meet demand, because the megawatts added to the system have not worked as expected. (El Universal, 04-30-2012; http://www.eluniversal.com/economia/120430/new-power-units-operate-inefficiently; http://www.eluniversal.com/economia/120430/venezuelan-govt-confirms-failures-in-major-power-plants)

Sources report fall in fuel supply in Caracas

The supply of gasoline in the Greater Caracas has been affected by failures in the distribution of fuel by the National Transport Company (ENT), industry sources reported. Gasoline deliveries have met not even 60% of total demand in gas stations, which amount to 290 gas pumps in Caracas Metropolitan Area.

Sources said that under normal circumstances, there should be about 120 oil tank trucks loading fuel at the gas stations in Caracas. However, the number of trucks is far lower. (El Universal, 04-30-2012; http://www.eluniversal.com/economia/120430/sources-report-fall-in-fuel-supply-in-caracas)

Logistics & Transport

Slow operations saturate ports

The slow processes, limited availability of machinery to mobilize cargo, limited yard capacity and the number of procedures involved in releasing loads have caused a saturation of containers in the yards of Puerto Cabello. Jorge Aroca, director of the Puerto Cabello Chamber of Commerce, explains there is an adversary criteria by some authorities in verifying cargo. More in Spanish: (Tal Cual, 04-30-2012; http://www.talcualdigital.com/index.html)

Politics

President Chavez enacted new Labor Law

President Hugo Chavez has signed a new Organic Labor Law to govern labor relations in Venezuela. (AVN, 04-30-2012; http://www.avn.info.ve/contenido/president-chavez-enact-new-labor-law-monday; El Universal, 04-30-2012 y 05-01-2012; http://www.eluniversal.com/economia/120501/retroactivity-of-severance-payment-should-be-estimated-since-1997; http://www.eluniversal.com/economia/120430/new-venezuelan-labor-law-reduces-working-hours)

Chávez weighs Venezuela's pullout of the IACHR

Venezuela's President Hugo Chávez disclosed the setup of a State Council to ascertain in the possibility of leaving the Inter-American Commission on Human Rights (IACHR).

"I will request the establishment of a State Council to analyze this subject and I have asked Dr. José Vicente Rangel and Luis Brito García to join it," the Head of State commented in an obligatory simultaneous broadcast from Miraflores presidential palace. (El Universal, 04-30-2012; http://www.eluniversal.com/nacional-y-politica/120430/chavez-weighs-venezuelas-pullout-of-the-iachr)

Chavez back in Cuba for more cancer treatment

President Hugo Chavez is on his sixth trip to Cuba this year to continue his treatment for cancer ahead of elections in October, fueling speculation his health is deteriorating. The National Assembly held an emergency session to vote on whether to grant him leave to absent himself from the country for more than five days. On previous occasions, Congress has voted unanimously in favor; this time the opposition demanded that the Vicepresident be named in the interim, and abstained as the majority voted permission. (Bloomberg, 04-30-2012; http://www.bloomberg.com/news/2012-04-30/chavez-seeks-permission-to-fly-to-cuba-for-more-cancer-treatment.html; AVN, 04-30-2012; http://www.avn.info.ve/contenido/parliament-discuss-chavez039s-permission-travel-cuba; El Universal, 05-01-2012; http://www.eluniversal.com/nacional-y-politica/120501/president-chavez-leaves-for-havana)

Guyana: Venezuela's position on Guyana is "incongruous"

The submission presented by the Guyanese government to extend the Caribbean country's continental shelf by 150 nautical miles was discussed last week by the Guyanese Parliament. Guyanese Foreign Minister Carolyn Rodrigues-Birkett referred to the objections that Venezuela has filed with Ban Ki-moon, the Secretary General of the United Nations, related to Guyana's submission to extend its continental shelf. "In September 2011, and indeed more recently, the government of the Bolivarian Republic of Venezuela, declared its incongruous position on the action taken by Guyana," the top diplomat said. (El Universal, 04-30-2012; http://www.eluniversal.com/nacional-y-politica/120430/guyana-venezuelas-position-on-guyana-is-incongruous)

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.