International
Trade
Uruguayan milk
producers ask their government to settle Venezuela's debt
Uruguay's National Association
of Milk Producers (ANPL) has requested a meeting with Uruguayan President
Tabaré Vazquez to ask his government to pay up the money Venezuela owes to
dairy producers, so the governments of both countries can settle their accounts
later, says Rodolfo Braga, President of the Association. In September 2015,
both governments agreed on the shipment of 235,000 tons of Uruguayan food
products to Venezuela for a total US$ 300 million. (El Universal, http://www.eluniversal.com/economia/160210/uruguayan-milk-producers-ask-the-govt-to-settle-venezuelas-debt)
Logistics
& Transport
Air cargo to and from
Venezuela dropped 28% in 2015, according to the International Air Transport Association (IATA). 3413
air waybills were issued as opposed to 4747 in 2014. Dollar sales, however,
increased 140%, from US$ 9.586 million to US$ 23.019 million. More in Spanish:
(El Mundo, http://www.elmundo.com.ve/noticias/economia/empresas/carga-aerea-desde-y-hacia-venezuela-cayo-28--en-20.aspx#ixzz3zr1cntfM)
Brazil's GOL airline
suspends service to Venezuela in currency dispute
Brazilian airline GOL has suspended
operations to Venezuela's capital Caracas until it can settle a dispute over
the transfer of money out of the country and back to Brazil, the company said
in a statement. The money is being held in
Venezuela under strict currency controls, a system that has led other airlines
to take write-downs on Venezuelan operations or suspend ticket sales and
service to the country. Airlines have US$ 3.9 billion of resources trapped in
Venezuela, according to the International Air Transport Association, or IATA.
The government requires all tickets to be sold in local currency but makes it
difficult for the airlines to convert that local revenue into dollars. The
Venezuelan Bolivar though has been shrinking, reducing the foreign currency
value of the local ticket sales. (Reuters, http://www.reuters.com/article/gol-linhas-ae-venezuela-idUSL2N15O23Q; Latin American Herald
Tribune, http://www.laht.com/article.asp?ArticleId=2405298&CategoryId=10717)
Oil
& Energy
Desperate Venezuela lobbies
hard for oil supply cut
Venezuela is lobbying hard
for OPEC and other oil producers to discuss cutting production but an emergency
meeting still appears some way off. The cost of a barrel of crude soared last
week after Russia said that OPEC and non-OPEC countries were considering a 5%
output cut across the board. And there are signs that OPEC powers such as Saudi
Arabia may be willing to act to stabilize the oil market. A senior Gulf source
has said that "all options are on
the table." But getting agreement on a cut within OPEC, let alone one
involving countries such as Russia and Mexico, is clearly easier said than
done. The task of trying to round up all the players has fallen to Eulogio Del
Pino, Venezuela's new oil minister and president of state oil giant PDVSA. Del
Pino is visiting Russia, Iran, Qatar and Saudi Arabia to see if there's support
for an emergency meeting. The frantic round of oil diplomacy has other players
too: Russian Foreign Minister Sergei Lavrov talked oil with Abu Dhabi's crown
prince earlier this week. Lavrov said a formal meeting between OPEC and other
oil producers could be called "if
everyone wants it." A spokesman for Iran's Supreme Leader Ali
Khamenei, while in Moscow Wednesday, said cooperation was vital at this
juncture. Saudi ARAMCO chairman Khalid al-Falih said his country would not
reduce output to make space for others, a thinly-veiled reference to regional
rival Iran who is eager to add one million barrels per day to its production by
the end of this year. He also stated bluntly that with the lowest cost
production in the world, the Kingdom could live with low oil prices "for a
long, long time." But he also held out the possibility of action. "If there are short term adjustments that
need to be made and if other producers are willing to collaborate, Saudi Arabia
will also be willing to collaborate," al-Falih said. Investment banking giant Goldman Sachs said
it's too late for the major players to save oil anyway. Saudi Arabia's oil
minister Ali al-Naimi discussed cooperation between OPEC members and other oil
producers to stabilize the global oil market with Del Pino, who said his
meeting was "productive",
his ministry reported. The prospect of supply restraint by the Organization of
the Petroleum Exporting Countries and rivals helped oil prices LCOc1 rise above
US$ 34 a barrel on Friday from a 12-year low close to US$ 27 last month,
despite widespread skepticism that a deal will happen. The Saudi petroleum
ministry did not elaborate on steps required to shore up the market. While
Saudi Arabia has said it’s open to cooperation between OPEC and non-OPEC
nations, analysts said the world’s largest exporter was unlikely to agree to
such a deal at a time when Iran and other global producers are themselves
raising production. They also want to ensure that U.S. shale production won’t
replace cuts made elsewhere. “They are
buying time while we wait for the solid proof that U.S. production is slowing,”
Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, said by
e-mail. (CNN Money: http://money.cnn.com/2016/02/04/news/opec-emergency-meeting-venezuela/; Reuters, http://www.reuters.com/article/us-saudi-oil-venezuela-idUSKCN0VG0MD; Latin American Herald
Tribune, http://www.laht.com/article.asp?ArticleId=2405124&CategoryId=10717; Bloomberg, http://www.bloomberg.com/news/articles/2016-02-08/dubai-stocks-lead-gulf-rally-after-saudi-venezuela-oil-talks)
PDVSA cut spending
after slump in prices
Petróleos de Venezuela (PDVSA)
cut 2015 capital spending as the state oil company grappled with crude prices
that last month extended a decline to the lowest in almost 13 years. PDVSA
reduced spending by as much as US$ 2.5 billion, or 15%, last
year, Strategy Director Sergio Antonio Tovar said on the sidelines of an
oil conference in London. He didn’t rule out further cuts this year. “If the current oil price level stays the
same, PDVSA, as other oil companies, will have to tighten its belt,” Tovar
said. It’s the first time since 2014 that PDVSA has publicly acknowledged
changing its capital spending plans as the company adjusts to a 70% plunge in
prices to about US$ 30 a barrel over the past 18 months. The company plans to
increase production by as much as 100,000 barrels a day by the end of this year
from 2.84 million barrels, after failing to regain the peak output of 3.2
million barrels reached in 2008. (Bloomberg, http://www.bloomberg.com/news/articles/2016-02-09/venezuela-state-oil-company-cut-spending-after-slump-in-prices)
ROSNEFT and
PDVSA ponder reducing investments
Russian state-run oil company
ROSNEFT and Venezuela's PDVSA could be pondering on reducing investments in
Venezuela if crude oil prices remain low for a long period, Russian news agency
RIA reported. The information was provided by Sergio Tovar, the Planning
Director of PDVSA in London, during the IP Week, an annual forum on oil and
gas. Further, the International Energy Agency (IEA) warned in its February oil
market report that "persistent
speculation about a deal between OPEC and leading non-OPEC producers to cut
output appears to be just that: speculation." (El Universal, http://www.eluniversal.com/economia/160210/rosneft-and-pdvsa-ponder-reducing-investments)
India's ONGC mulls
US$ 500 million investment in Venezuelan field
Oil & Natural Gas
Corp., India’s biggest explorer, may invest as much as a half billion dollars
to revive a faltering Venezuelan field. The company’s overseas unit ONGC Videsh
Ltd., which owns a 40% stake in the San Cristobal field in the Orinoco
heavy-oil belt, is seeking to boost output with partner Petroleos de
Venezuela SA, said P.K. Rao, director of operations at ONGC Videsh. “We are yet to finalize the detailed plan,
but our share of investment could be around US$ 500 million,” Rao said
in a phone interview from New Delhi. “The
revival plan will aim at making the San Cristobal project profitable.”
ONGC Videsh invested about US$ 190 million for its stake in 2008. The field
produces about 28,000 barrels a day, down from a peak of 38,000 barrels, ONGC
Videsh Managing Director Narendra Kumar Verma said in August. (Bloomberg, http://www.bloomberg.com/news/articles/2016-02-09/india-s-ongc-mulls-500-million-investment-in-venezuelan-field)
Shopping malls
cutting hours due to severe electricity crisis, government offices to work half
time
Due to a growing crisis in
electric energy supply attributed by government officials to low water
reservoir levels arising from the “El Niño” climate condition, General Luis
Motta, Electric Energy Minister, has ordered shopping centers to comply with a
2011 resolution that calls for high energy users – including shopping centers –
to provide their own energy. Many are now opening for a limited number of hours
a day. However, Alfredo Cohen, President of the national shopping malls
associations (CAVECECO), says "malls in Venezuela only
represent 2.92% of national power consumption”. He adds that if malls open from 12 pm thru 7
pm, as the chamber proposed, it would represent daily power savings of 3,030
megawatts for 5 hours, while the power rationing plan proposed by the Ministry
of Electric Energy implies 4 hours of interruption of power supply for savings
of 2,130 megawatts. Cohen said that implementing CAVECECO's proposal "would have less impact on our visitors."
Although the regime has denied rationing, the measure has drawn a storm of
protest from mall users, theater goers and mall workers. General Motta also
says the regime may order government offices and public institutions to work
only “half time” to save energy. (El
Universal, http://www.eluniversal.com/economia/160210/cavececo-only-50-of-malls-have-power-plants; Latin American Herald
Tribune, http://www.laht.com/article.asp?ArticleId=2405359&CategoryId=10717; and more in Spanish: (AVN; http://www.avn.info.ve/contenido/grandes-usuarios-deben-contribuir-uso-eficiente-energ%C3%ADa-ante-baja-embalses; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/motta-dominguez-aqui-no-hay-toque-de-queda-electri.aspx; El Nacional, http://www.el-nacional.com/economia/Motta-Dominguez-racionamiento_0_791321068.html; El Universal, http://www.eluniversal.com/economia/160211/preparan-reducir-horario-en-instituciones-publicas)
Commodities
Acquiring
medications in Venezuela is getting harder and harder
Congress, controlled by the
opposition, has declared a human health crisis in Venezuela amid shortages of
medications and medical equipment, and deterioration in public health
institutions. Lawmakers debated the issue after Venezuelan Pharmaceutical
Federation, or FEFARVEN, president Freddy Ceballos explained flaws and problems
in the distribution of up to 80% of medications across the country. “We are witnessing a human crisis, patients
are dying for lack of medication,” Ceballos told EFE, adding that it was “very difficult” to keep records of
patients affected by diseases that appeared recently, such as Zika, since there
was not an epidemiological bulletin, a report that Congress should restore.
(Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2405176&CategoryId=10718)
Flour inventories for bread
and pasta may run out in February
Juan Crespo, head of the
Flour Workers Federation, warns that wheat flour inventories for bread and
pasta will only hold out through February, imperiling 80,000 direct and
indirect jobs. More in Spanish: (El Nacional; http://www.el-nacional.com/economia/Advierten-inventarios-alcanzan-finales-febrero_0_787721416.html)
Economy
& Finance
Venezuela bonds drop for
third day on heightened default concern
Venezuela bonds slumped for
the third straight day amid concern this nation is close to defaulting after a
local newspaper said a government official had proposed stopping payments on
foreign debt. The yield on the country’s US$ 4 billion of dollar bonds due in
2027 rose 0.33 percentage point to 28.42% as of 12 p.m. on Wednesday in New
York. The price on the notes, which carry a coupon of 9.25 percent, has fallen
7.6% in the past three trading days to 35.62 cents on the dollar. Caracas-based
newspaper EL NACIONAL reported Feb. 7 that the country’s new Economy Vice
President Luis Salas earlier this month proposed halting foreign debt payments
in a meeting with President Nicolas Maduro. The newspaper didn’t say where it
got the information and said both the oil and commerce ministers opposed the
proposal. “It’s the first reported access to internal cabinet dialogue that we
have that suggests that default is being pushed for at the top echelons of
government and by the new top economic policy maker,” Russ Dallen, a managing
partner at LATINVEST in Miami, said. Venezuela’s Finance Ministry declined to
comment. Venezuela’s government may be rethinking its debt strategy after the
opposition won a so-called super majority in congress last year after the
country made US$ 5.2 billion in payments on foreign debt in October and
November, Dallen said. “The government
now realizes that honoring its external financial obligations bought it no
votes and that had they used that US$ 5.2 billion to put a chicken in every pot
on top of a new stove or in a new refrigerator in barrios across the country,
they would’ve gotten a lot more votes,” he said. Salas, a 39-year-old
university professor, was named by Maduro as head of the country’s economy in a
cabinet reshuffle last month. Salas, who is seen as one of the more radical
members within the government, argued in an economic pamphlet published last
year that inflation doesn’t exist “in
real life” and is instead a phenomenon caused by speculation, usury and
hoarding. (Bloomberg: http://www.bloomberg.com/news/articles/2016-02-10/venezuela-bonds-drop-for-third-day-on-heightened-default-concern)
'The most miserable country
in the world' is slipping toward
default
Over the past few days, the
talk among those who watch "the most miserable country" in the world
has turned to default. This year, it seems, is Venezuela's year. "Unless
the Chinese pull something out of the bag or PDVSA exercises a voluntary bond
swap it's happening," said Brian Dean, a partner at ACG Analytics.
"There's going to be a default in my
view unless there's some kind of political disruption ... They can sell assets
but I don't know what they have left." The "default" calls have gotten especially loud over the last week.
In a note Tuesday, Bank of America Merrill Lynch economist Albert Ades said
that if Brent oil prices level off at US $25, Venezuelan GDP would hit US$ 80
billion, making its external debt of US$ 123 billion unpayable. "In such a scenario, a forceful restructuring
of Venezuelan debt would be very hard to avoid," he said. Harvard
economist Ricardo Hausman, who has been attacked by the government in the past,
wrote in the FT that while 2015 was bad, oil's low price will make 2016 much
worse. The "most likely scenario is
an imminent economic collapse and a humanitarian crisis," he wrote.
He's talking an Argentina 2001-sized meltdown. The most bearish of those out
there in the market think it could happen as soon as the end of this month.
That's when Venezuela has to make a US$ 1.5 billion debt payment. Of course,
people have been saying that Venezuela is on the brink since at least 2014. Yet
every year the country ekes by and bond investors get paid — a lot. As The Wall
Street Journal pointed out, last year, Venezuelan government bonds returned 17%
for investors with the stomach to handle this ride. (Business Insider: http://www.businessinsider.com/venezuela-now-in-default-mode-2016-2)
Venezuela is about to go
bust
Venezuela will have to
default. The only question is when. A Venezuela meltdown could rock financial
markets, and people around the world will lose a lot of money. But we should
all save our collective sympathy — both the government in Caracas and the
investors who enabled it had it coming. This year, given current oil prices and
dwindling foreign reserves, if Venezuela were to pay off its obligations — at
least US$ 10 billion — and maintain government spending, it would have to
import close to nothing. In a country that imports most of what it consumes,
this would ensure mayhem. Many people have been buying high-risk, high-return
Venezuelan debt for years — from pension funds in far-off countries to small
banks in developing ones. Most stand to lose their shirts. Yet the signs that
this was unsustainable were there for all to see. For years, analysts have been
warning that the Venezuelan government would rather chew nails that allow the
private sector to grow. And yes, a lot of that borrowed money was used to help
establish a narco-military kleptocracy. Investors in Venezuelan debt have only
their hubris to blame. In a few months, once the rubble of the Bolivarian
revolution is cleared, the discussion will turn to how Venezuela can be helped.
It would be smart to remember that aid should come to the Venezuelan people
first. If and when a responsible government in Caracas asks for foreign
assistance, solving this urgent issue should be at the top of the agenda.
Conditions on financial assistance should privilege the interests of
Venezuelans caught in the debacle above the interests of angry hedge fund
managers or international bankers. (Foreign Affairs: https://foreignpolicy.com/2016/02/05/venezuela-is-about-to-go-bust/)
Central Bank in
talks with Deutsche Bank on gold swap
Venezuela's central bank
has begun negotiations with Deutsche Bank to carry out gold swaps to improve
the liquidity of its foreign reserves as it faces heavy debt payments this
year, according to two sources familiar with the talks. Low oil prices and a
decaying state-led economic model have weakened the nation's currency reserves
and spurred concerns that it could default on bonds as it struggles to pay US$ 9.5
billion in debt service costs this year. Around 64% of Venezuela's US$ 15.4
billion in foreign reserves are held in gold bars, which limits President
Nicolas Maduro's government's ability to quickly mobilize hard currency for
imports or debt service. In December, Deutsche and Venezuela's central bank
agreed to finalize a gold swap this year, the sources said. The sources did not
confirm the volume of the operation in discussion. Neither Deutsche nor the
central bank responded to requests for comment. (Reuters, http://www.reuters.com/article/us-venezuela-economy-exclusive-idUSKCN0VE1AT; http://www.reuters.com/article/us-global-oil-idUSKCN0VH03B)
Venezuela could
learn from Weimar hyperinflation, legislators call for Central Bank directors
to resign
With inflation at an annual
average of 98.3% for 2015, and predictions that it could reach 720% this year, Venezuela may
be about to join the ranks of countries that have experienced out-of-control
price increases that cripple the economy. If hyperinflation -- defined as price
increases of 50% or more a month -- sets in, there will be inevitable
comparisons to other such episodes. The most famous of these is the one that
hit Germany in the early 1920s, with its images of ordinary people paying for
necessities with wheelbarrows full of money. But perhaps the most interesting
aspect of historical episodes of hyperinflation is how they end. And Germany
offers an example that Venezuela might credibly emulate to
regain control of its currency. Opposition Congressman Elías Matta has pointed out that cumulate
inflation in Venezuela is 7931% since 1999, and called on Central Bank
directors to resign, “if you have any
shame”. (Bloomberg, http://www.bloombergview.com/articles/2016-02-10/venezuela-could-learn-from-weimar-hyperinflation; and more in Spanish: El Nacional, http://www.el-nacional.com/politica/Diputado-Elias-Matta-inflacion-acumulada_0_787721377.htm)
Trade Minister says current
FOREX system is exhausted, changes to be announced in days
Jesús
Faría, Venezuela’s Foreign Trade and Investment Minister, has told The Wall
Street Journal that “the current FOREX
system is exhausted” and exchange adjustment will be announced “in a few days”….”policies must adjust to current reality”. Economic authorities are
reported to be meeting to devise a new devaluation which would bring the 6.30
and 12 VEB/US$ to somewhere between 50-60 VEB/US$. The proposal is being
analyzed by President Nicolas Maduro and his principal economic advisor,
Alfredo Serrano, a Spaniard linked to Spain’s PODEMOS party, according to these
reports. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/faria--regimen-de-divisas-vigente-se-agoto.aspx#ixzz3zHyOk8oh; El Nacional, http://www.el-nacional.com/economia/Estudian-devaluar-Cencoex-bolivares-dolar_0_787721462.html)
Politics
and International Affairs
Venezuela under 'economic emergency' as court gives
Maduro decree powers
Venezuela’s supreme court
has overruled the opposition-controlled congress and granted broad decree
powers to President Nicolás Maduro.
Congress in January had refused to approve Maduro’s declaration of an “economic emergency”. The court ruled in
a decision made public on Thursday night that Maduro did not need congressional
approval after all. The court said the declaration of emergency was now in
effect, granting Maduro greatly expanded authority over the struggling economy
for 60 days. Critics of Venezuela’s socialist administration immediately
denounced the move as unconstitutional and tantamount to a coup. (The Guardian:
http://www.theguardian.com/world/2016/feb/12/venezuela-under-economic-emergency-as-court-gives-maduro-decree-powers)
In Venezuela, things will
get worse before they get better
Segments of Venezuela's
opposition are laying the groundwork for a political confrontation with the
presidency. There is a draft law in the National Assembly that could be used to
effectively cut short the tenure of President Nicolas Maduro. Various factions
of the opposition are calling for slightly different courses of action. Some
opposition leaders, including the runner-up in the last elections, Henrique
Capriles, have advocated a referendum approach, but the speaker of the National
Assembly, Henry Ramos Allup, has publicly backed Causa R's proposal, which is
notable in that it would put in place a legal framework that the president will
have a difficult time opposing. Causa R's aim is to enshrine the presidential
changes in a constitutional amendment. If approved by the legislature, where
the opposition holds a sizeable majority, it would go to a national referendum.
Such an outcome would be risky for Maduro. He could resist or reject the
opposition's referendum but this would be dangerous. If the government refused
to legally recognize the opposition's referendum call, the public may see the
president as standing in the way of reforms that would address the country's
severe economic distress. The result would be a severe political crisis that
would stall economic reforms and fuel public anger at the government. Yet the
opposition is incapable of exerting enough pressure from the National Assembly
to break the resulting political stalemate. Therefore, it will be crucial to
see which side the majority of the Venezuelan armed forces backs. Major unrest
is of particular concern to military leadership — their troops, the National
Guard in particular, will be the ones tasked with controlling any protests.
Maduro will need strong support from the military if he is to resist the
referendum. Military commanders are likely preparing for the worst. Maduro's
removal would not fix structural problems such as high inflation, but it could
relieve some of the public anger at the central government and overcome the
government's resistance to economic adjustments. With the country's political
impasse worsening, substantive efforts at reform will be delayed as long as
possible. Depending on how the legislative process plays out, Venezuela could
become highly politically unstable in the near term. But even if the country
avoids political upheaval, the long-term picture is still bleak. The next
government — whether it comes to power soon or after presidential elections in
2019 — will have to oversee a major economic adjustment and cope with the
ensuing threat of social upheaval. Sharp and socially disruptive adjustments,
combined with a lengthy downturn due to depressed oil prices, will probably
keep Venezuela politically unstable and economically depressed for several
years, complicating the country's return to being a major oil producer.
(Stratfor: https://www.stratfor.com/analysis/venezuela-things-will-get-worse-they-get-better)
The endgame in Venezuela
The government has run out
of dollars—liquid international reserves have fallen to just US$ 1.5 billion,
thinks José Manuel Puente, an economist at the IESA business school in Caracas.
While all oil-producing countries are suffering, Venezuela is almost alone in
having made no provision for lower prices. This spells misery for all but a
handful of privileged officials and hangers-on. Real wages fell by 35% last
year, calculates Asdrúbal Oliveros, a consultant. According to a survey by a
group of universities, 76% of Venezuelans are now poor, up from 55% in 1998.
Drugmakers warn that supplies of medicines have fallen to a fifth of their
normal level. Many pills are unavailable; patients die as a result. In Caracas
food queues at government stores grow longer by the week. Shortages will get
even worse in March, worries a food-industry manager. Violent crime is out of
control. Yet President Nicolas Maduro shows no sign of changing course. Last
month he issued an “economic emergency” decree, rejected by the new assembly,
which mainly offered more controls. His government seems paralyzed by
indecision and infighting. Henry Ramos, the speaker of the assembly, has given
the president six months to solve the economic crisis or face removal by
constitutional means. On paper these include a recall referendum, an amendment
to shorten his six-year term or a constituent assembly, which could rewrite the
constitution. In practice, the rigged court and the chavista electoral authority
can block or stall all of these. So the first step, says Ramos, is for the new
assembly to replace the 13 justices. That, too, would be vetoed by the court.
Stalemate is costly. Violent scuffles in food queues and localized looting are
everyday occurrences. “We are seconds
away from situations that the government can’t control. It’s a very thin line,”
says Henrique Capriles, a moderate opposition leader who narrowly lost to
Maduro in the 2013 presidential election. Most in the opposition and some chavistas
believe a negotiated transition is the only way to prevent a descent into
bloodshed. The outlines of such a deal are clear. The regime would concede an
amnesty for political prisoners and agree to restore the independence of the
judiciary, the electoral authority and other powers. In return the opposition
would support essential, but doubtless unpopular, measures to stabilize the
economy. Ramos says that there are “some
conversations” but no formal dialogue. On the street, time is running out.
Many in the opposition want Maduro’s resignation as the price for such a deal,
and either a fresh election or his replacement by Aristóbulo Istúriz, his new
and moderate vice-president. (The Economist: http://www.economist.com/news/americas/21690098-country-brink-social-explosion-only-negotiated-transition-can)
BOFA predicts crisis will
continue even if oil prices rebound
The most recent report on
Venezuela by Bank of America Merrill Lynch indicates that the economic crisis
will continue even if oil prices recover: “We
believe it highly probable that import contraction will continue despite which
exchange rate adjustment is made”. Latest trade statistics show imports
fell 45% last year, and private sector representatives have indicated there
will be a more severe contraction this year, with inventories dropping to
critical levels. Since there have been no major price adjustments, scarcity could
rise to levels “that make 2015 look like
a time of abundance”, and this will bring political consequences. “The growing demand for regime change creates
increased incentives for the opposition to move quickly forward on a recall
referendum, so we cannot rule out the possibility of more social tension and a
high risk to governance in the next few months”, says the report. More in
Spanish: (El Nacional, http://www.el-nacional.com/economia/recupere-precio-petroleo-continuara-crisis_0_791321070.html)
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.
