International Trade
Cargo that has arrived at Puerto Cabello
- Over 2,990 tons of doors, windows and upholstered
wooden chairs from China for state agency CORPOVEX
- Over 580 tons of milk in 20 containers from
Argentina for state agency CASA
- Over 400 tons of auto parts from China's Ica
International and Chery Automobile for Corporation ZGT
- Over 247 tons of cheese, cottage cheese and other
dairy products, from Argentina for CASA
- Over 121 tons of refined paraffin wax from China
for Industria Cerera La Coromoto
- Over 108 tons of assorted merchandise, including
apparel, lingerie, sheets, fabric, shoes, sandals and appliances from Panama's
Colon Free Trade Zone.
Logistics & Transport
Arrest of former Aquatic and Air Transport Minister ordered
over ferry acquisition
A warrant has been issued to INTERPOL for the arrest
of former Major General Herbert García-Plaza, former Minister of Aquatic and
Air Transport, for irregularities in the purchase of three ferries during his
tenure. The three ferries were bought
by the national port authority (BOLIPUERTOS) to cover the Puerto
La Cruz-Margarita Island route, as authorized by former Minister Major General
Hébert García Plaza, and were 12 years old. To repair them cost five times
(€241.5 million) what they cost originally (€45.7 million). None was ever
operational. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43621&idc=3¡;
and more in Spanish: El Universal, http://www.eluniversal.com/nacional-y-politica/150422/ordenan-captura-del-exministro-herbert-garcia-plaza)
Oil & Energy
Venezuela oil delegation meets Qatar officials
on OPEC tour
Oil Minister Asdrubal Chavez led a Venezuelan
delegation in Qatar for meetings with local officials following similar talks
in Iran and Saudi Arabia on an OPEC tour seeking ways to boost crude prices,
according to a government statement. So far unable to nudge Saudi Arabia and
its Gulf allies into supporting supply cuts, Venezuela is exploring various
options to boost its position including a proposal to blend its heavy crude
with OPEC allies' light grades. (Reuters, http://www.reuters.com/article/2015/04/22/qatar-venezuela-oil-idUSL1N0XJ1HZ20150422;
El Universal, http://www.eluniversal.com/economia/150422/venezuelan-delegation-discusses-in-qatar-opecs-oil-output)
Commodities
Industry here are operating at 50% capacity
The National Council of
Industries reports a drop to 50% operating capacity during the first quarter
this year. 78% of industries report their inventories have diminished and they
were unable to replace them. More in
Spanish: (El Universal, http://www.eluniversal.com/economia/150422/sector-industrial-funciona-a-50-de-su-capacidad; El Nacional, http://www.el-nacional.com/economia/Industrias-producen-capacidad-instalada-hace_0_614338723.html)
Government debt with pharmaceutical labs rose US$ 500
million this year to US$ 4 billion, according
to a source within the sector. He claimed the government had only allocated
dollars three times so far this year but that they had not been enough. The
source said all the dollars allocated were barely 5% of the total debt with
each company. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43623&idc=2)
Economy & Finance
Central Bank swaps U$S 1 billion gold reserves with
CITIBANK for FOREX
Venezuela's Central Bank has
swapped almost US$ 1 billion in gold reserves for a loan from CITIBANK.
Although details have not been made available, experts estimate CITIBANK is
charging 6-7% for the swap. Gold reserves will remain in the Bank of England as
a guarantee for the loan. It is reported that the funds are to be used for
imports. More in Spanish: (El Nacional; http://www.el-nacional.com/)
Parallel government funds reported down by 44.3% in
one month
Parallel FOREX funds held by the Venezuelan government
have dropped 44.3% in one month, from US$ 15.8 billion to US$ 8.8 billion,
according to the ECOANALITICA research firm. The National Development Fund now
reports US$ 4.2 billion, from US$ 6.5 billion, down 35.3% in one month. PDVSA
accounts had a fast descent from US$ 2,4 billion to US$ 6 million, down 75%.
Other FOREX funds have dropped by 42%, from US$ 6.9 billion to US$ 4 billion.
More in Spanish: (El Nacional; http://www.el-nacional.com/)
DEUTSCHE BANK insists in Venezuela default projection
for 2016
DEUSTSCHE BANK insists Venezuela will default by 2016
since it estimates the deficit is too large to meet. "The market has generally discarded a credit event in 2015, but a
default continues to be our base scenario for 2016...the financing gap would
simply be too large to cover and distortions will probably evolve toward a more
dangerous level". More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/banca/deutsche-bank-mantiene-escenario-de--default--para.aspx#ixzz3Y7o8jeOR)
Maduro says debt to be honored
President Nicolás Maduro
says Venezuela has met its financial obligations despite current conditions and
says "we have paid several billion
dollars in debt. It is our obligation. He have not defaulted ever nor will we".
More in Spanish: (AVN; http://www.avn.info.ve/contenido/maduro-reiteró-cumplimiento-responsabilidades-naciones-pesar-guerra-económica)
Maduro attacks FEDECAMARAS as it reports Venezuela
owes foreign suppliers US$ 10 billion
President Nicolás Maduro has stepped up his attacks on
the private business sector. Following a report by Jorge Roig, President of the
nation's premier business organization, FECECÁMARAS, that Venezuelan importers
and private companies have racked up arrears of around US$ 10 billion with
international suppliers due to delays in the government's allocation of hard
currency, Maduro immediately announced that no more dollars would be sold to
FEDECÁMARAS, for they have allegedly masterminded the so-called "economic war" against his
government by "manipulating product
distribution". Over the last couple of days, Maduro has been
threatening and intimidating the nation’s entrepreneurs with having a new
enabling law enacted soon and sending all of them to prison. He announced that
he is making final adjustments to a special "counteroffensive plan" through which he will "wipe the floor" with alleged
destabilization plans, and that he will unveil the details on May 1. Nicolás
Maduro's statements could imply that the flow of dollars sold to the private
sector companies affiliated to FEDECÁMARAS could shrink even more. Specialists
and advisors warned that such measure could seriously harm supply of goods and
services in the country. The director of polling firm DATANÁLISIS, Luis Vicente
León, believes Maduro's remarks were more political than practical. He says the
attack on FEDECÁMARAS "seems like a
political distraction strategy" in view of the upcoming parliamentary elections,
but adds that this course of action "makes
the crisis worse. To threaten productive sectors is the worst possible strategy".
Roig called Maduro's threats a "show
of bravado... which proves discretionary use of FOREX...is a political tool and
not one for development". He made it clear that FEDECÁMARAS does not
and has never sought FOREX as an institution, and said: "In Venezuela it is a crime to create jobs,
in Venezuela those who have inventories are persecuted". Roig adds
that the business sector is willing to engage in dialogue with the government,
as long as threats against businesspersons stop. "A nation is not built by threatening business". (Reuters, http://www.reuters.com/article/2015/04/22/us-venezuela-business-idUSKBN0ND2GM20150422;
Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2384874&CategoryId=10717;
El Universal, http://www.eluniversal.com/economia/150422/maduro-no-more-dollars-for-federation-of-chambers-of-commerce;
http://www.eluniversal.com/economia/150423/analysts-forecast-more-shortages-in-venezuela-if-forex-cuts-continue;
http://www.eluniversal.com/economia/150422/fedecamaras-a-country-is-not-built-by-threatening-businesspersons
and more in Spanish: Infolatam: http://www.infolatam.com/2015/04/23/patronal-tilda-de-bravuconada-de-maduro-anuncio-de-vetar-divisas-a-privados/; El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/maduro-iniciara-el-1--de-mayo-un-plan-de--revolcon.aspx#ixzz3Y1yhseHf; http://www.elmundo.com.ve/noticias/economia/empresas/roig--fedecamras-nunca-ha-solicitado-dolares-como-.aspx#ixzz3Y7nn2WIz; http://www.elmundo.com.ve/noticias/economia/empresas/gobierno-y-fedecamaras-reavivan-tensiones.aspx; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/maduro-anunciara-el-1--de-mayo-un-plan-de-revolcon.aspx; http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/maduro-fedecamaras-no-hay-mas-dolares-para-ustedes.aspx; http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/roig-fedecamaras-nunca-ha-solicitado-dolares-para-.aspx, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/fedecamaras-rechazo-senalamientos-de-maduro.aspx; El Universal, http://www.eluniversal.com/nacional-y-politica/150422/presidente-promete-dar-un-revolcon-economico; Diario2001, http://www.2001.com.ve/en-la-agenda/95393/luis-v--leon---ataque-a-fedecamaras-luce-como-una-estrategia-de-distraccion-.html; http://www.2001.com.ve/en-la-agenda/95346/maduro---no-hay-mas-dolares-para-los-pelucones-de-fedecamaras-.html)
Government refusal to allocate FOREX will limit
production, distribution, jobs
Industry believes President
Maduro's saying he will not allocate FOREX to FEDECAMARAS - which comprises
most of the nation's formal business - means he intends to suspend allocations
to companies since the business organization itself uses no FOREX. Industrial
leaders warn that without allocations they will be unable to acquire supplies,
keep production lines operating, maintain employment or supply shelves. Pablo
Olalquiaga, head of the Chemical and Petrochemical Industry Association, adds "if there is no domestic production the
government will have to import more and use more FOREX for imports, and there
will be no jobs created". More in Spanish: (El Nacional; http://www.el-nacional.com/)
80% of Venezuelans unable to afford food basket
Inflation and high food prices are hitting the life
quality of Venezuelans, who cannot fully afford the local basic food basket.
According to the results the National Life Conditions Survey (ENCOVI), 80% of
Venezuelans said they have not enough money to buy food items. This information
was disclosed at the Simón Bolívar University (USB), which carried out the
study along with the Central University of Venezuela (UCV) and the Andrés Bello
Catholic University (UCAB). The cost of the Venezuelan basic food basket keeps
growing as it rose 5.2% in March to VEB 15,200.62 (US$ 2,412.79), according to
Labor Union's Center for Documentation and Social Analysis (CENDA). The most
important rises were in food products such as beef (5.8%); milk, cheese and
eggs (5.7%); and fish (7.4%). Out of eleven food items comprising the local
basic food basket, 10 soared, including three with the highest rises:
oleaginous and leguminous seeds (beans, 30.7%); sugar and sugary products
(18.5%); and fats and oils with a 13.4% variation. (El Universal, http://www.eluniversal.com/economia/150423/eighty-percent-of-venezuelans-unable-to-afford-food-basket;
and more in Spanish: El Universal, http://www.eluniversal.com/economia/150423/food-basket-up-52-in-march-in-venezuela)
Politics and International Affairs
Venezuela's population officially pegged at 30.825.782
The National Assembly has approved the population
index set by the National Statistics Institute, setting the nation's total
population at 30.825.782. More in Spanish: (Diario 2001, http://www.2001.com.ve/con-la-gente/95288/poblacion-de-venezuela-es-oficialmente-de-30-825-782.html)
US willing to consider Venezuela's agenda for
restoring talks
US Secretary of State John Kerry says the US is
willing to consider the steps sought by Venezuela in order to restore
diplomatic bilateral talks. He said the US "remains open to work on our differences and try to find areas of common
interest". More in Spanish: (AVN; http://www.avn.info.ve/contenido/eeuu-dispuesto-considerar-pasos-solicitados-venezuela-para-establecer-diálogo; El Universal, http://www.eluniversal.com/nacional-y-politica/150422/kerry-eeuu-sigue-abierto-a-dialogar-con-venezuela)
Spain doesn’t
want to break off relations with Venezuela, FM Says
Foreign Minister Jose Manuel Garcia-Margallo says
Spain has no intention of breaking off diplomatic relations with Venezuela,
adding that he hopes for “democratic
stability and economic prosperity” here.
He says: “We do not intend to
continue this escalation, and it is not our purpose to break relations with
Venezuela”. Madrid summoned the Spanish ambassador to Caracas for
consultations after Maduro's "escalation
of insults, calumnies and threats", accusing the Spanish government of
"supporting terrorism" here
and saying Spanish President Mariano Rajoy is part of "a
group of corrupt bandits and thieves". (Latin American Herald Tribune,
http://www.laht.com/article.asp?ArticleId=2384834&CategoryId=10717;
El Universal, http://www.eluniversal.com/nacional-y-politica/150423/spain-we-do-not-intend-to-break-relations-with-venezuela;
and more in Spanish: El Nacional, http://www.el-nacional.com/politica/Maduro-Espana-apoyar-terrorismo-Venezuela_0_614338762.html; El Universal, http://www.eluniversal.com/nacional-y-politica/150423/espana-llamo-a-consulta-al-embajador-antonio-perez)
Felipe González: I do not want to cause a conflict in
Venezuela
Spain's former president Felipe González says he is
willing to visit Venezuela in mid-May, despite the fact that the pro-government
majority in the Venezuelan National Assembly has passed a motion declaring him
persona non grata. He says he wants to have the opportunity to visit prisoners
inside jail and to attend the oral trial as a technical advisor. Gonzalez
points out that only the Executive Power, and not the Legislative Power, has
the authority to declare someone persona non grata. González and hopes such
declaration is not issued in the end. "I
intend to go (to Venezuela), but I do not want to cause a conflict" he
conceded. Former Latin American presidents Fernando Henrique Cardoso (Brazil),
Ricardo Lagos (Chile), and Julio María Sanguinetti (Uruguay) have voiced their
solidarity with González and advocate the right to help politicians "unfairly imprisoned." Gonzalez volunteered
to advise the defense team of Venezuelan detained opposition leaders Leopoldo
López and Antonio Ledezma. (El Universal, http://www.eluniversal.com/nacional-y-politica/150423/felipe-gonzalez-i-do-not-want-to-cause-a-conflict-in-venezuela; http://www.eluniversal.com/nacional-y-politica/150423/three-ex-presidents-voice-solidarity-with-felipe-gonzalez)
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.
