May 24, 2013

Economics & Finance

Central Bank liquid reserves down to U$D 2.2 billion

At the close of April the Central Bank's balance sheet shows liquid international reserves are down to U$D 2.2 billion. These are reserves available for servicing foreign debt and imports made under the FOREX Committee (CADIVI). At the start of this year liquid reserves stood at U$D 3 billion. More in Spanish: (El Universal, 05-24-2013; http://www.eluniversal.com/economia/130524/las-reservas-liquidas-del-bcv-ascienden-a-22-millardos-de-dolares)

Production shutting down

Some industries that produce plastic containers, wood, paper, cardboard and aluminum have had to shut down production lines due to lack of inputs to FOREX scarcity, according to José Manuel González, President of the Packaging Industry Chamber. More in Spanish: (El Nacional, 05-24-2013;; http://www.el-nacional.com/)

Maduro stresses support for companies that seek to increase production

President Nicolás Maduro has stressed that the government will support businessmen interested in increasing production of goods and services in the country: "We can perfectly well develop a policy to walk together in developing the productive force of the nation. Without developed productive forces there is no socialism or anything else". More in Spanish: (AVN, 05-24-2013;; http://www.avn.info.ve/contenido/maduro-recalca-apoyo-del-gobierno-empresas-interesadas-aumentar-producci%C3%B3n-bienes)

The government will invest over U$D 2.4 billion in Guayana industries, says Venezuelan Guayana Corporation (CVG) President General Carlos Osorio: "Here we are investing over U$D 2.4 billion in order to strengthen the entire CVG system, and we will soon have results." More in Spanish: (AVN, 05-24-2013;; http://www.avn.info.ve/contenido/gobierno-bolivariano-invierte-m%C3%A1s-2400-millones-d%C3%B3lares-industrias-cvg; El Universal, http://www.eluniversal.com/economia/130524/inspeccionan-industrias-en-guayana-en-gobierno-de-calle)

Domestic debt soars 97.5% in three years

Although the Venezuelan oil basket price has stayed above the U$D 100 ceiling, the nation's debt has continued growing. According to data from the Finance Ministry, the government has relied on bonds issued within the local market, thus increasing its obligations by 97.5% in the past three years. By the end of March 2010, domestic debt was U$D 24.6 billion and in March 2013 it stands at U$D 48.6 billion. This total includes bonds issued by the Ministry of Finance, as well as operations by parallel funds. Total direct official domestic debt was U$ 5.2, which did not exist three years ago. (El Universal, 05-23-2013; http://www.eluniversal.com/economia/130523/venezuelas-domestic-debt-soars-975-in-three-years)

Central bank: Economy requires U$D 3 billion per month

The government seems willing to bring order into the foreign exchange administration system after admitting publicly that "ghost firms" have been sold US dollars in recent years at a preferential exchange rate.
Central Bank President Edmée Betancourt has confirmed that the bank has resources available the private sector, but they have to streamline the procedures and stop selling US dollars to the wrong actors.
In a meeting with health sector entrepreneurs, Betancourt estimated that the productive apparatus needs U$D 3-3.5 billion monthly, which is U$D 36-42 billion annually for imports, not the U$D 59 billion reported by the Bank in 2012. (El Universal, 05-23-2013; http://www.eluniversal.com/economia/130523/central-bank-venezuelan-economy-requires-usd-3-billion-monthly)

Business sees dire economy in 2013

Venezuela is slipping into high inflation and economic stagnation this year due to a shortage of hard currency and a decade-long weakening of domestic industry, the head of the country's main business group Fedecamaras said. It's President, Jorge Botti, says Venezuela could see no growth and even shrink as much as 3% with inflation of more than 30% even though the price of oil - Venezuela's main export - is seen steady near $100 per barrel. He said this year's expected "stagflationary" scenario is the result of an economic model built on oil-financed government spending, the backbone of the self-styled socialist revolution. (Reuters, 05-23-2013; http://www.reuters.com/article/2013/05/23/us-latam-summit-venezuela-economy-idUSBRE94M0QD20130523)

Entrepreneurs, gov't seek to streamline US dollar sale procedures

Commerce Minister Alejandro Fleming met with health sector representatives to try to streamline procedures for acquiring US dollars. Fleming said that a comprehensive assessment must be undertaken jointly to determine which steps are necessary and which are not in order to simplify procedures. He added that US dollar sales are under way pending within the Foreign Exchange Administration Commission (CADIVI). (El Universal, 05-22-2013; http://www.eluniversal.com/economia/130522/entrepreneurs-govt-seek-to-streamline-us-dollar-sale-procedures)

Supplementary appropriation for hygiene products

The National Assembly has passed a supplementary appropriation for the Ministry of Trade in order to acquire "hygiene products" (toilet paper) (Veneconomy, 05-22-2013; http://www.veneconomy.com/site/index.asp?ids=44&idt=34838&idc=2; Reuters, http://www.reuters.com/article/2013/05/22/venezuela-shortages-idUSL2N0E219I20130522)

Commodities

Putin confirms Russia's strategic alliance with Venezuela

In a letter to President Maduro, Russian President Vladimir Putin has confirmed his nation's strategic alliance with Venezuela. In recent days this alliance has taken shape in the energy sector. His letter came at the same time ROSNEFT President Igor Sechin visited Venezuela. Joint projects mentioned:

• ROSNEFT will grant CVP (Venezuelan Petroleum Corporation) credit up to U$D 1.5 billion in order to develop such joint ventures as PETROPERIJÁ, PETROMONAGAS, PETROZAMORA, PETROMIRANDA y PETROVICTORIA, with ROSNEFT taking the lead in the two latter ones. Oil Minister and PDVSA President Rafael Ramírez announced a joint venture which will rise to U$D 1.832 billion this year, and the total by 2019 will be U$D 28.489 billion.

• PETROVICTORIA to pump 120,000 BPD in 2016. PETROVICTORIA, a joint venture between state oil company PDVSA and Russia's ROSNEFT, will start production in 2016 and reach 120,000 barrels per day, PDVSA said on Thursday. The joint venture will produce ultra-heavy crude from the vast Orinoco Belt, a large deposit of oil in the Orinoco River basin of southeastern Venezuela. Oil Minister Rafael Ramirez and Rosneft President Igor Sechin signed documents for the official creation of Petrovictoria, which must be approved by Congress.

• ROSNEFT and PDVSA to jointly develop the Róbalo gas field on the Gulf of Venezuela. The agreement signed calls for ROSNEFT to evaluate available geologic and geophysic information on the field, which is part of the Rafael Urdaneta Gas Project.

• PETROMONAGAS will increase crude oil production to 160,000 BPD. The Russo-Venezuelan joint venture will develop plans to expand production, says Minister Rafael Ramírez. He made his statement during a visit to the Jose Industrial Complex near Barcelona, in the Eastern state of Anzoátegui, which he toured along with ROSNEFT President Igor Sechin. Ramírez also said Sechin came with a delegation of industrialists who produce drills, as well as Russian service companies.sp?ids=44&idt=34838&idc=2; Reuters, http://www.reuters.com/article/2013/05/22/venezuela-shortages-idUSL2N0E219I20130522)

Logistics & Transport

Aircraft fleet has shrunk 52.3%

In 2009 Venezuela had a fleet of 130 commercial aircraft, but Julio Arnaldes, President of the Tourism Council says it is now down to 68. He said that the rest of the planes are inoperative and not likely to return to the air. "Therefore, we see the country constantly crowded airports. Not necessarily because of increased ticket demand, but there are very few aircraft to serve the number of passengers," he said, added that sometimes the number of aircraft flying reaches 50 routine screening those who have to submit the equipment or by the lack of spare parts. More in Spanish: (El Nacional, 05-24-2013;; http://www.el-nacional.com/)

Politics

SÚMATE demands speedy decision in election challenge

SUMATE has urged the Elections Chamber of the Supreme Court to render a speedy answer to the challenges brought by the opposition, which seeks to nullify the April 14th Presidential elections. More in Spanish: (El Universal, 05-24-2013; http://www.eluniversal.com/nacional-y-politica/130524/sumate-demanda-celeridad-ante-las-impugnaciones)

Municipal elections likely to be held on November 24

Venezuela is likely to hold municipal elections next November 24. Although the directors of the National Electoral Council (CNE) have not agreed on a firm date yet, CNE executives have been instructed to reschedule the elections using different scenarios, including November 24. This is the fourth time in the past 12 months that the CNE sets a date to elect 335 mayors, 2,835 counselors, 69 municipal representatives for the indigenous people, two mayors for the metropolitan areas, and 20 township counselors. (El Universal, 05-22-2013; http://www.eluniversal.com/nacional-y-politica/130522/local-elections-likely-to-be-held-in-venezuela-on-november-24)

President and Navy review test missile restored by Venezuelan technology

President Nicolas Maduro and members of the military high command attended the test of one of 18 Otomat Mk2 missiles acquired in the 70s and restored by Venezuelan technicians, with Cuban support. Maduro said that this project is part of the recovery of the FANB defense capability. Local media report Maduro took the opportunity to meet with National Assembly Diosdado Cabello, Defense Minister Diego Molero and former Vice President José Vicente Rangel, to review the scandal surrounding tape recordings of former TV anchorman Mario Silva speaking to a Cuban G2 agent, in which he reports conflicts among all four of these men. (AVN, 05-23-2013; http://www.avn.info.ve/contenido/president-and-navy-test-missile-restored-venezuelan-technology; El Universal, http://www.eluniversal.com/nacional-y-politica/130522/maduro-cabello-attend-military-activities-on-orchila-island)

Maduro to attend inauguration of his Ecuadorian counterpart

President Nicolás Maduro will attend the swearing-in ceremony of reelected Ecuadorian President Rafael Correa. It is not known when Mr. Maduro will travel to Ecuador. (El Universal, 05-23-2013; http://www.eluniversal.com/nacional-y-politica/130522/maduro-to-attend-inauguration-of-his-ecuadorian-counterpart)

Murder rate in Venezuela increased 13% in 2013, according to Venezuelan Violence Observatory NGO Chief Roberto Briceño León. He explained public policies are evaluated for their results and not for their intentions, and “if after 20 safety plans, what we get is an evolution from 4,500 murders in 1998 to 21,000 in 20012, the plans have been a failure.” (Veneconomy, 05-22-2013; http://www.veneconomy.com/site/index.asp?ids=44&idt=34839&idc=1)

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 05, 2013

Economics & Finance

Experts lower GDP growth projection to 2% and more adjustments are on the way, according to Credit Suisse analysts who recently visited Caracas. Their conclusion is that "current political uncertainty seriously hinders economic policy making and there is growing pressure on FOREX supply". It adds: "Recent devaluation of the official exchange rate was timid, has not relieved pressures on the economy, and is unlikely that there will be other efficient and necessary fiscal and monetary policies". Credit Suisse says one of the mistakes made was not providing an alternate vehicle for FOREX transactions, which has raised the parallel market. More in Spanish: (El Nacional, 03-05-2013; http://www.el-nacional.com/)

No FOREX relief in sight as long as Giordani remains

According to Credit Suisse experts there is no alternate system for legal FOREX sales in sight as long as Finance and Planning Minister Jorge Giordani remains in office. They believe "Giordani will remain at his post and keep his influence on key economic policy decisions, if and when Chavez remains President." It says his departure is "too great a risk for current equilibrium within chavismo". More in Spanish: (El Nacional, 03-05-2013; http://www.el-nacional.com/)

FOREX allocation restricted on finished products

Requests for importing finished products have been restricted by the "Supreme Authority in charge of Optimizing the Exchange System", after Planning and Finance Minister Jorge Giordani demanded a review of applications pending from 2012 to determine which will receive the prior 4.30 per U$D rate. More in Spanish: (El Nacional, 03-05-2013; http://www.el-nacional.com/)

Government and PDVSA consolidated debt rose to U$D 144.8 billion in 2012, according to figures from the Ministry for Finance and Planning. This is up from U$D 114.1 billion in 2011, an increase of 27%. These figures do not include Chinese loans or PDVSA's debt with the Central Bank, which would make the number considerably higher. More in Spanish: (El Universal, 03-05-2013; http://www.eluniversal.com/economia/130305/deudas-del-gobierno-central-y-pdvsa-suman-1448-millardos)

Scarcities are due to lower productivity, not increased demand

According to DATANALISIS President Luis Vicente León says supply problems are not due to increasing demand but rather stem from lowered production by State controlled companies and fewer imports. The Government has been accusing private industry of lowering production in order to receive price adjustments, but private sector capacity is lower due to lack of raw material, FOREX scarcity, delays in permits and bottlenecks in port procedures. More in Spanish: (El Universal, 03-05-2013; http://www.eluniversal.com/economia/130305/mercado-sufre-la-baja-oferta-de-empresas-del-estado)

Inflation pressures Government to raise the minimum wage. Any such decision would also increase liabilities with State employees and have a negative impact on the nation's economy. More in Spanish: (El Mundo, 03-05-2013; http://www.elmundo.com.ve/Noticias/Economia/Laboral/Gobierno-analiza-anticipar-aumento-del-salario-min.aspx)

CORPOELEC debt rises, bills remain unpaid 18 months

According to Central Bank data, the National Electricity Corporation (CORPOELEC) indebtedness rose 25%. CORPELEC now owes local contractors U$D 8 billion at the prior exchange rate and some bills have gone unpaid for 18 months. More in Spanish: (El Nacional, 03-05-2013; http://www.el-nacional.com/) 

Commodities

26 days with no aluminum production, and 7 with no iron

For 26 days VENALUM's aluminum plant has been unable to supply domestic metal transformers weeks; and SIDOR has now been 7 days without receiving iron ore from FERROMINERA ORINOCO,  and is eating up inventories. At VENALUM production is down to minimum service in order to avoid damages. Private transforming plants are now down to "zero". It is now reported that the strike FERROMINERA ORINOCO ended yesterday with an agreement between the company and workers; and that tensions are now lower at VENALUM as talks have begun. More in Spanish: (Tal Cual, 03-04-2013; http://www.talcualdigital.com/index.html and  Últimas Noticias; http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/suspenden-paro-en-ferrominera-y-venalum.aspx)

Minister claims over 25,000 tons of alleged hoarded food is available to the public

Trade Minister Edmee Betancourt says a total 25,774 tons of food she claims was hoarded by private business have been seized and placed at the disposal of the public. (AVN, 03-02-2013; http://www.avn.info.ve/contenido/over-25000-tons-hoarded-food-made-available-people)

International Trade

CASA imported 983 tons of frozen beef for PDVAL and MERCAL. The shipment arrived in Puerto Cabello from Puerto Limón, Costa Rica. 11 laden vessels remain at bay in Puerto Cabello. More in Spanish:  (Notitarde, 03-04-2013; http://www.notitarde.com/La-Costa/Casa-importo-983-toneladas-de-carne-congelada-para-surtir-Pdval-y-Mercal/2013/03/04/169446; El Carabobeño, http://www.el-carabobeno.com/impreso/articulo/51873/-al-puerto-carabobeo-arribaron-938-toneladas-de-carne-congelada) 

Politics

Maduro boots U.S. attaché, suggests Chavez's cancer may have been "innoculated"

Venezuela accused its domestic and foreign enemies of "attacking" ailing President Hugo Chavez and expelled a U.S. Embassy attaché accused of seeking military support for a plot against the government, according to Vice President Nicolas Maduro. David Delmonaco, an Air Force attaché for the U.S. Embassy in Caracas, was expelled "for being implicated in (a) conspiratorial plan," the country's information ministry said.  A senior Obama administration official told CNN that the United States "denies the charge that the air attaché, or anyone else in our embassy or the U.S. government, was plotting against the Venezuelan government." US officials expressed sympathy for President Chavez. Maduro also said there are "strong indications" that Chavez himself, fighting a battle with cancer, was somehow infected by outsiders. Maduro's comments came after he met with the country's top officials about Chavez's worsening health condition. These are the "most difficult moments we have experienced" since Chavez' surgery on December 11, he said. Maduro said a more detailed report on the president's condition is forthcoming. (CNN, 03-05-2013; http://edition.cnn.com/2013/03/05/world/americas/venezuela-chavez-main/index.html?iref=allsearch; El Universal, 03-05-2013; http://www.eluniversal.com/nacional-y-politica/130305/venezuelan-government-evicts-us-defense-attache; http://www.eluniversal.com/nacional-y-politica/130305/us-government-expresses-sympathy-for-president-chavez)

Chávez has new infection, breathing problems worsen

An official communiqué just out says President Chávez now faces a "new and severe respiratory infection” and his "general health remains critical". Communications and Information Minister Jesús Villegas dispatched written statement from the Military Hospital in Caracas saying "there is deterioration of the respiratory system" and adding that the President is receiving "high impact chemotherapy, among other treatment." (The Wall Street Journal, 03-04-2013;  http://online.wsj.com/article/SB10001424127887323494504578341151326106178.html; and more in Spanish: AVN; http://www.avn.info.ve/contenido/presidente-ch%C3%A1vez-enfrenta-nueva-infecci%C3%B3n-respiratoria; El Universal, http://www.eluniversal.com/nacional-y-politica/130305/presidente-chavez-presenta-nueva-y-severa-infeccion)

Venezuelans protest as Maduro says Chavez in chemotherapy

Venezuelans marched in Caracas and other cities yesterday; demanding more information on President Hugo Chavez’s health after the government said he’s undergoing chemotherapy following cancer surgery. Vice President Nicolas Maduro, who has been running the country in the self-declared socialist’s absence, said March 1 that Chavez is undergoing chemotherapy after surgery for an undisclosed type of cancer in Cuba more than two months ago. Maduro said Chavez is in “good spirits,” in spite of the severity of the treatment. (Bloomberg, 04-03-2013; http://www.bloomberg.com/news/2013-03-04/venezuelans-protest-as-maduro-says-chavez-getting-chemotherapy.html; El Universal, http://www.eluniversal.com/nacional-y-politica/130304/demonstrators-demand-the-truth-about-venezuelan-president-chavezs-heal; Reuters, http://www.reuters.com/article/2013/03/03/us-venezuela-chavez-idUSBRE9220BG20130303; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=698757&CategoryId=10717; The Washington Post, http://www.washingtonpost.com/world/the_americas/opposition-protests-in-venezuela-demanding-details-about-health-of-president-chavez/2013/03/03/43f42e8c-8422-11e2-a80b-3edc779b676f_story.html; Fox News, http://www.foxnews.com/world/2013/03/02/venezuela-says-chavez-receiving-chemotherapy/)

Opposition discussing single ballot option, Capriles nomination

Talks are underway within the Democratic Unity Conference on conditions placed by some political parties before again endorsing Henrique Capriles Radonski as the only opposition presidential candidate. Sources within the Conference say it is "almost a done deed" that Capriles's party, Primero Justicia will now back the proposal for a single opposition presence on the ballot. Capriles himself is said to favor the proposal. The issue of no reelection depends on the mandate´s duration, and there seems to be a positive stance on creating a broader campaign command. More in Spanish: (El Nacional, 03-05-2013; http://www.el-nacional.com/)

Venezuela says it’s tracking opposition leader in U.S.

The bruising and often bizarre world of Venezuelan politics would seem to be a long way from New York City, but a top official here said this weekend that the government of President Hugo Chávez was tracking the movements of a prominent opposition politician while he was on a trip to Manhattan. “We have him closely monitored,” Vice President Nicolás Maduro said of opposition leader, Henrique Capriles Radonski. “I have all the data, exactly where he is in Manhattan, in New York, at this moment,” Mr. Maduro said on government-run television, looking at his cell phone as if checking information sent to him in a text message or an e-mail. (The New York Times, 03-03-2013; http://www.nytimes.com/2013/03/04/world/americas/venezuela-says-its-tracking-opposition-leader-in-us.html?_r=0)


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 15th, 2013

Economics & Finance

Pro government congressman warns Venezuela reaching limit for oil funding

Jesús Faría, a National assembly member from the ruling PSUV party warns that a fiscal reform is needed to increase non-oil income and says "at this time we are reaching the financial limit" of income provided from oil. He called for a progressive tax structure where those who earn more should pay a greater percentage of their income. More in Spanish: (El Mundo, 01-15-2013; http://www.elmundo.com.ve/Noticias/Economia/Politicas-Publicas/Faria--Venezuela-esta-llegando-al-limite-en-el-uso.aspx)

Only the government expects 6% growth in 2013, all others estimate slowdown to 2-4%

Venezuela's economy grew 5.5% in 2012, along with 20.1% inflation, a huge fiscal deficit and a restricted allocation of foreign currency in the market. The government has projected 6% growth for 2013, but this prediction is conditioned by pending fiscal and exchange adjustments, as well as reduced spending. As a consequence, private analysts, investment bankers and multilateral agencies expect growth will actually drop to somewhere between 2-4%. The UN Economic Commission for Latin America expects a 2% slowdown. More in Spanish: (El Mundo, 01-15-2013; http://www.elmundo.com.ve/)

Food shortages bigger worry than Constitution

At a bustling food market in downtown Caracas, armed officers belonging to President Hugo Chavez’s National Bolivarian Guard marched by boxes of lettuce and tomatoes, checking prices and storage rooms. The inspection is part of a nationwide campaign to crack down on over-pricing and hoarding the government blames for shortages of basic goods, from toilet paper to sugar. The government said today that consumer prices in December jumped the most in 2 1/2 years, highlighting the growing economic problems that are amassing as Chavez’s battle with cancer unleashes a power struggle. (Bloomberg, 01-11-2013; http://www.bloomberg.com/news/2013-01-11/chavez-s-food-shortages-bigger-worry-than-venezuela-constitution.html)

Black money market thrives as economists say Venezuela is on track to have the highest inflation rate in the world in 2013. Paula Newton explains. (CNN; 01-14-2013; http://edition.cnn.com/video/#/video/world/2013/01/14/pkg-newton-venezuela-economy.cnn)

Commodities

State-run aluminum industries face crisis early in 2013

A bleak new year has begun for Venezuela’s aluminum makers after fierce labor protests and an output decline caused by shortages in raw materials and spare parts in 2012. Union leaders continue to call for further investment and subsidies for industries which lack financial capacity to meet fixed costs; while officials claim improved conditions are expected in 2013. (El Universal, 01-12-2013; http://www.eluniversal.com/economia/130112/venezuelan-state-run-aluminum-makers-face-crisis-early-in-2013)

US oil byproduct sales to Venezuela up 195% in 2012

According to US Energy Department data, petroleum byproduct exports to Venezuela rose significantly from January to October 2012. The figures reflect complicated operating conditions in the Venezuelan oil-refining sector last year with the US supplying an average 71,000 barrels of by-products to Venezuela, a 195% hike over 2011. More in Spanish: (El Universal, 01-12-2013; http://www.eluniversal.com/economia/130112/us-sales-of-oil-by-products-to-venezuela-up-195)

Agriculture products cost rose 35% in 2012, basic food basket up 28.5%

Agriculture product prices rose 35% in 2012, according to Central Bank data; with an 11% jump in December alone. Farm representatives say rising transportation costs, scarce spare parts and problems acquiring fertilizers have hit crop prices. The Teachers Federation Center for Social Analysis says prices in the basic food basket - subject to price controls - rose an average 28.5% last year, and that "2.2 minimum wage salaries are needed to pay for the monthly basket". More in Spanish: (El Universal, 01-14-2013; http://www.eluniversal.com/economia/130115/el-precio-de-los-productos-agricolas-se-disparo-35-en-2012 and El Nacional; http://www.el-nacional.com/)

Wheat inventories may exceed storage capacities

The Wheat Processing Association warns that due to recently increased wheat purchases caused by of recent scarcities "granaries are now full, ships are waiting at bay and others are on their way, which can exceed storage facilities".  (El Universal, 01-14-2013; http://www.eluniversal.com/economia/130114/delays-in-venezuelan-seaports-results-in-wheat-surplus; and more in Spanish: El Nacional; http://www.el-nacional.com/)

International Trade

Venezuela's trade surplus with the United States dropped U$D 9.2 billion

According to recent data from the US Commerce Department, Venezuela's trade with the United States dropped 31% between January and November 2012, to U$D 19.7 billion, U$D 9.2 billion less than the same period of 2011. The traditional surplus (imports minus exports) dropped along a historic rise in imports from the US. More in Spanish: (El Mundo,01-14-2013; http://www.elmundo.com.ve/Noticias/Economia/Politicas-Publicas/Superavit-comercial-de-Venezuela-con-Estados-Unido.aspx)

Logistics & Transport

34.3% advance work has been completed on expansion and modernization of La Guaira Port, according to the General Pedro Castro, Deputy Minister of Air and Aquatic Transport. Completion is scheduled for 2014. (Bolipuertos, 01-14-2013; http://www.bolipuertos.gob.ve/noticia.aspx?id=6606)

37 vessels remain at bay in Puerto Cabello, and one sugar laden ship from Brazil has been waiting since December 23rd; others are bearing wheat, soy and rice paddy. Ship count included 7 tankers, 2 carrying vehicles, and 2 cattle ships. More in Spanish: (Notitarde; 01-15-2013; http://www.notitarde.com/La-Costa/Buque-con-azúcar-espera-en-bahía-de-Puerto-Cabello-desde-el-23-de-diciembre/2013/01/15/159738)

Politics

Opposition to challenge top court ruling on Chavez swearing-in at regional court

Venezuela’s opposition plans to present a case before a regional human rights court to challenge a Supreme Court decision that allowed the indefinite postponement of President Hugo Chavez’s inauguration. The case is being prepared by a group of lawyers for the country’s opposition coalition, said Gerardo Blyde, a lawyer and opposition politician. He told reporters that it’s not yet clear when the case will be brought before the Costa Rica-based Inter-American Court of Human Rights. (The Washington Post, 01-12-2013; http://www.washingtonpost.com/world/the_americas/venezuela-opposition-to-challenge-court-ruling-on-chavez-swearing-in-before-regional-court/2013/01/12/34147e32-5ce9-11e2-b8b2-0d18a64c8dfa_story.html; Fox News, http://www.foxnews.com/world/2013/01/12/venezuela-opposition-to-challenge-court-ruling-on-chavez-swearing-in-before/)

Democratic Unity Board asks the OAS and MERCOSUR to debate Venezuela

Ramón Guillermo Aveledo, chairman of Venezuela's united opposition has written MERCOSUR and the OAS calling for them to act upon the Supreme Court's decision to rupture the democratic process. In a letter, Aveledo says that extension of the Presidential term is "a clear case of usurped authority, and violates clearly established legal and constitutional rules". More in Spanish: (El Universal, 01-15-2013; http://www.eluniversal.com/nacional-y-politica/130115/mesa-solicito-a-oea-y-mercosur-debatir-caso-de-venezuela)

Brazil calls for rapid elections if Chavez dies

High ranking Brazilian officials report this country has asked Venezuelan authorities to hold elections "as soon as possible" in case President Chavez dies; the request was made to Vice President Nicolás Maduro. Although the Venezuelan Constitution calls for new elections in 30 days after the death of the President, some fear a change in rules should Maduro be likely to lose at the polls. More in Spanish: (Tal Cual, 01-15-2013; http://www.talcualdigital.com/index.html)

US and Latin America are monitoring the situation in Venezuela

Roberta Jacobson, US Assistant Secretary of State for Latin America says the US and other Hemispheric governments have been in contact over the situation in Venezuela, and adds: "We would like the situation to become clearer" and says if "new elections" are required by the Venezuelan Constitution they would hope these elections are "open to all". More in Spanish: (El Universal, 01-15-2013; http://www.eluniversal.com/nacional-y-politica/130115/estados-unidos-y-latinoamerica-revisan-situacion-venezolana)

Jaua says "people’s will above bourgeois formalities"

Elías Jaua, Vice President of the government party PSUV in the central region claims the people’s will is above bourgeois formalities used by right-wing sectors. “Beyond legal technicalities, the problem is who governs in the country: whether the people or the bourgeoisie. And here rules the Bolivarian people with the leadership of Hugo Chavez". Jaua made his remarks at an assembly called in support of the recent ruling of the Supreme Tribunal on the President's continuity in office. (AVN, 01-14-2013; http://www.avn.info.ve/contenido/people039s-will-above-bourgeois-formalities)

Trio of Chavez protégés hold key to Venezuela's future

A month after President Hugo Chavez left Venezuela for a fourth cancer operation, his commanding control over the government is slowly moving into the hands of an unlikely trio of protégés who may shape the future of the nation. Chavez's cancer has left him in serious condition in a Cuban hospital and created a leadership vacuum after 14 years of cult-of-personality socialism that has made him a dominant figure in Latin America. Given a micro-managing style that put an inordinate number of decisions in his hands, and his unique ability to control an alliance that ranges from union activists to military officers, that leadership is now being shared out among his top allies. (Reuters, 01-14-2013; http://www.reuters.com/article/2013/01/14/us-venezuela-chavez-trio-idUSBRE90D07Z20130114)

Government political team meets in Havana

Vice-President Nicolás Maduro and Cuban President Raúl Castro met at Havana's according to Cuban official media. National Assembly Speaker and ruling party Vice-President Diosdado Cabello also attended the meeting, along with Oil Minister Rafael Ramírez and Solicitor General Cilia Flores. No meeting agenda was revealed. (El Universal, 01-14-2013; http://www.eluniversal.com/nacional-y-politica/130114/venezuelan-government-political-team-meets-in-havana; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=661837&CategoryId=10717)

Officials claim Chavez conscious, clinical course favorable; brother says he is not in coma and recovering

Communications and Information minister Ernesto Villegas officially said the President’s respiratory infection has been controlled. “The President is conscious, communicating with his family, his political team and the medical team which takes care of him, keeping updated with relevant information”. His brother, Adan Chavez, who is also governor of Barinas state, denied that the president was in a coma and that his family was considering disconnecting life-support machines, according to a statement published on the Barinas state government’s website. “We know this is part of a dirty war by the necrophiliac opposition in this country”. (Bloomberg, 01-12-2013; http://www.bloomberg.com/news/2013-01-12/venezuela-s-chavez-not-in-coma-and-recovering-brother-says.html; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=661972&CategoryId=10717; AVN, 01-14-2013; http://www.avn.info.ve/contenido/chavez-conscious-clinical-course-favorable; El Universal, http://www.eluniversal.com/nacional-y-politica/130113/chavez-requires-specific-actions-for-respiratory-failure; http://www.eluniversal.com/nacional-y-politica/130114/people-have-the-right-to-know-whether-the-president-elect-is-to-rule; Reuters, http://www.reuters.com/article/2013/01/14/venezuela-chavez-idUSL2N0AJ0DA20130114; Bloomberg, http://www.bloomberg.com/news/2013-01-14/chavez-s-recent-health-is-favorable-infection-controlled.html; The Washington Post, http://www.washingtonpost.com/world/the_americas/venezuelas-government-says-chavez-is-conscious-and-responding-to-treatment-for-lung-infection/2013/01/13/82857c0c-5dec-11e2-8acb-ab5cb77e95c8_story.html)

HRW says Venezuela’s Government acts to curb discussion about Chavez health, inauguration

Venezuela should end censorship and intimidation of media that challenge the official line regarding President Hugo Chávez’s health and inauguration, Human Rights Watch said.
In recent days, the government has ordered a television station to cease transmission of spots that question its interpretation of the constitutional requirements for the re-elected president’s inauguration. Intelligence agents have searched the home and confiscated the computers of a blogger suspected of authoring tweets questioning official information provided about Chávez’s health. (Latin American Herald Tribune, 01-14-2013; http://www.laht.com/article.asp?ArticleId=662100&CategoryId=10717)

Opposition demands accurate information on the President's health, rejects governance from Cuba

Opposition parties say Venezuela's government is "paralyzed" and say Cuba's Castro brothers are only interested in keeping Venezuelan subsidies and not the problems of the people. Thomas Guanipa, Secretary General of Primera Justicia says: "We cannot understand how they speak of sovereignty when in fact they are being managed by foreign parties" More in Spanish: (El Nacional, 01-15-2013; http://www.el-nacional.com/)



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.