09 June , 2016

Logistics & Transport

Why airlines are abandoning Venezuela

In the 1970s Venezuela’s oil wealth attracted business travelers from all over the world. An Air France Concorde flew between Paris and Caracas once a week. But for airlines the supersonic boom has given way to a frustrating bust. On May 28th LUFTHANSA announced that it was suspending its thrice-weekly flights from Frankfurt to Caracas as of June 18th. Two days later LATAM, Latin America’s largest airline group, declared that it would cut all its services to the country after August 1st. In recent years AIR CANADA, AMERICAN AIRLINES, ALITALIA and GOL have all scaled back or suspended their Venezuelan operations. Why are so many airlines crossing the country off their schedules? Desperate to avert a sovereign default, which would cut off credit to the ailing oil industry, the government has tightened currency controls introduced by Chávez in 2003. The restrictions make it almost impossible for companies to convert local Bolívares into dollars. This has made it difficult for international airlines, who typically charge customers in local currencies, to repatriate their profits. LUFTHANSA has written off the more than US$ 100 million it says it is owed; LATAM says it is due US$ 3 million. The International Air Transport Association (IATA), the airlines’ trade body, estimates that Venezuela’s government is withholding US$ 3.8 billion of airline revenues.  Demand for flights to Venezuela has, in any case, fallen in recent years as fewer business travelers visit the country. LATAM says that flights to Caracas make up less than 1% of its business. Caracas’s airport is often deserted. But the carriers’ departures are a symbolic blow to the government and exacerbate Venezuela’s isolation from the rest of the world. Just a handful of foreign airlines remain. AIR FRANCE, UNITED AIRLINES and IBERIA have all said they will maintain their flights for the time being. But it might not be long before they, too, fly away. (The Economist: http://www.economist.com/blogs/economist-explains/2016/06/economist-explains-1)

 

 

Oil & Energy

PETROPAR willing to repay PDVSA debt at 50% discount

Eddie Jara, Director of Paraguay’s state oil company PETROPAR, says this company is willing to pay off a debt now being claimed by Venezuela’s PDVSA this very year, but at a 50% discount. PDVSA had previously said it will sue if the US$ 287 million debts are not paid off within 10 days. PETROPAR is basing its offer on the deal PDVSA made with Uruguay and the Dominican Republic. PDVSA suddenly made its demand right after Paraguay sided with OAS Secretary General Luis Almagro in his call for applying the Hemispheric Democratic Charter in the case of Venezuela. More in Spanish: (Fox News Latino: http://latino.foxnews.com/latino/espanol/2016/06/08/petropar-quiere-pagar-deuda-venezuela-este-ano-pero-si-le-condonan-el-50/)

 

Del Pino: OPEC to assess production bands

Petroleum and Mining Minister Eulogio Del Pino says that a new system of production bands proposed by Venezuela will be evaluated by the Organization of Petroleum Exporting Countries (OPEC) in November this year. He reports that during the meeting held on June 2 in Vienna, Austria, a number of countries such as Saudi Arabia and Iran took “extreme positions” on control of the oil market and that for that reason he proposed a country-specific production band and also one for OPEC in general “so that we have a range and certain amount of flexibility.” (El Universal, http://www.eluniversal.com/noticias/daily-news/del-pino-opec-assess-production-bands_314012)

 

 

Commodities

Regime confirms CLAP food distribution system is “political”          

Protests over food distribution have increased after the government here established a new system for distributing food at controlled prices through the so-called Local Committees for Supply and Production (CLAP). Opposition representatives immediately charged that distribution was discriminatory, directed only to regime loyalists; and the charge was promptly confirmed by Executive Vice President Aristobulo Istúriz who says “the CLAP is a political defense instrument for the people who battle against the bourgeoisie and an oligarchy that wants to defeat the revolution”. He said the system intends to control around 70% of all food distribution. His words were echoed by Erika Farías, who coordinates the local CLAP system, who said it is a political instrument “for revolutionaries” and that the committees “must be made up by Bolivarian and chavista men and women” who not only deliver food but also talk to families on current events. Nutrition Minister General Rodolfo Marco Torres said food items will now be distributed in bags every 20 days to families that comply with CLAP requisites within their neighborhood. Members of the CLAP recently rallied at Miraflores presidential palace to defend “nutrition sovereignty” and protest international interference. CLAP system czar Freddy Bernal says the system does not intend to replace the private system and means to ensure that price-controlled food goes to the really needy. The opposition controlled National Assembly has rejected the CLAP system because it promotes further discrimination and makes the food crisis worse. Caracas city council member Gladys Castillo has charged that in taking a census for food distribution the CLAP system “asks people if they are for or against the revolution, and those who are not for the revolution do not eat…in lower income neighborhoods houses are marked with a “0” if they say they are opposition and they sell them nothing.” More in Spanish: (Correo del Caroní: http://www.correodelcaroni.com/index.php/nacional-2/item/45979-gobierno-remarca-que-los-clap-son-un-instrumento-politico-de-la-revolucion-y-manejados-por-chavistas; Notitarde; http://www.notitarde.com/Economia/Freddy-Bernal-Clap-distribuiran-50-de-los-productos/2016/06/08/991154/; El Universal, http://www.eluniversal.com/noticias/economia/red-publica-privada-establecen-alianza-para-expendio-alimentos_313998; http://www.eluniversal.com/noticias/politica/diputados-vecinos-exigieron-defensor-investigar-los-clap_313968)

 

Maduro creates mining ministry

President Nicolas Maduro has announced the creation of a ministry devoted just to mining, as this nation pushes to develop untapped mineral resources to diversify away from the oil industry, which provides nearly all its foreign exchange. Maduro's government is seeking international partnerships with foreign investors to boost gold production. This year, Venezuela inked an agreement with Canadian mining company Gold Reserve to develop the Las Brisas and Las Cristinas mines as a way of resolving a long-running arbitration dispute. Maduro appointed Roberto Mirabal to the lead the ministry. (Reuters, http://www.reuters.com/article/us-venezuela-mining-idUSKCN0YU070)

 

 

Economy & Finance

Inflation here will reach 3560% by 2019 if Maduro remains in office

The International Monetary Fund projects that inflation here will reach 3560% by 2019 if President Nicolas Maduro reaches the end of his term of office. Economist Asdrubal Oliveros explains that the number is based on the premise that current economic policies will continue. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Inflacion-continuar-Maduro-poder_0_862714078.html)

 

World Bank sees plunge in Venezuela

The World Bank is forecasting that Venezuela’s economy is shrinking 10.1% this year, more than double the multilateral’s prior estimate and the worst performer among all countries tracked by the World Bank. Lower international commodity prices have torpedoed Venezuela’s economy, weighing on Latin America’s prospects in general. Venezuela’s Nicolas Maduro is clinging to power amid growing street protests and economic meltdown. (Bloomberg, http://www.bloomberg.com/news/articles/2016-06-07/world-bank-sees-three-year-brazil-decline-plunge-in-venezuela)

 

Venezuela crisis is opportunity for foreign bond investors

As Venezuela's economy teeters on the edge of collapse and some people go hungry, a growing number of foreign investors are reaping outsized returns betting on this nation's depressed debt. Venezuela's bonds have sunk so low amid a deep crisis that even if it defaults on its debt, bondholders reckon there will still be rewards when the country eventually recovers, helped by its huge reserves of crude. Venezuelan dollar bonds on average have returned an impressive 14.1% so far this year, according to DATASTREAM figures. That means investors have reaped around US$ 3.5 billion in returns from the bonds already in 2016, according to a calculation by London-based brokerage EXOTIX Partners. The figure is nearly three times the US$ 1.2 billion Venezuela plans to spend on imports of pharmaceuticals this year as dire shortages of medicines from anti-itch skin cream to chemotherapy drugs hit home. (Reuters, http://www.reuters.com/article/us-venezuela-bonds-analysis-idUSKCN0YU0EN)

 

Can Venezuela recover from current economic meltdown?

Inflation is expected to reach 720% this year in Venezuela. Many are unable to pay the current high food prices, with looting and smuggling creating more problems. When and how can this oil rich company get back on track? Donald Kingsbury, lecturer in Political Science and Latin American Studies at the University of Toronto, joins Bloomberg TV Canada’s Rudyard Griffiths to share his thoughts. (Bloomberg, http://www.bloomberg.com/news/videos/2016-06-07/can-venezuela-recover-from-current-economic-meltdown)

 

 

Politics and International Affairs

Elections Board again fails to announce dates for recall signature validation

Despite an announcement by opposition coalition MUD Secretary General Jesús Torrealba, the National Elections Board has again failed to announce specific dates for validating signatures calling for a recall referendum or how many signatures are preliminarily approved. Torrealba had made his announcement after meeting with the only independent member of the Elections Board, Luis Emilio Rondon, and had said validation of approximately 1.3 million signatures could take place sometime between 15 and 22 June. More in Spanish: (El Nacional, http://www.el-nacional.com/politica/EFE-Venezuela-paso-respuesta-revocatorio_0_862714135.html)

 

…and pro-government gangs attack legislators seeking recall decision from Elections Board

A group of members of the National Assembly who tried to visit the National Elections Board this morning has been attacked with explosive devices by pro-government gangs and beaten with metal pipes, motorcycle helmets, and stones. Julio Borges, head of the Democratic Unity caucus at the National Assembly received facial wounds and charged General Favio Zavarce with allowing the attacks to take place after ordering the National Guard to eject the lawmakers from the Board premises. Borges said “we went there on behalf of over two million people who signed the petition to revoke, and on orders from General Zavarce we were barred from entering and attacked…the general issued the order for us to be pushed towards the attacking group…we said we were there in peace, bearing the Constitution, simply to be listened to. But the pro-regime Board members refused to see us; they believe they are above the Constitution, above the people.” More in Spanish: (El Impulso: http://www.elimpulso.com/noticias/nacionales/fue-lo-dijo-julio-borges-luego-agredido-colectivos; El Nacional: http://www.el-nacional.com/politica/Julio-Borges-Zavarce-empujaran-colectivos_0_863313734.html)

 

Opposition will not attend future meetings with mediating group without an agenda

The Democratic Unity coalition (MUD) says it will not meet again with former presidents José Luis Rodríguez Zapatero (Spain), Martín Torrijos (Panama) and Leonel Fernandez (Dominican Republic) until a specific agenda for talks with the Maduro regime is set. Coalition sources say the recall referendum against President Maduro has not been included and is not negotiable. More in Spanish: (El Nacional, http://www.el-nacional.com/politica/MUD-reunira-mediadores-agenda-concreta_0_862714084.html)

 

Zapatero reportedly admits he failed to get the opposition to back off on recall referendum

Spain’s former President José Luis Rodríguez Zapatero reportedly has admitted that his attempt to bring about talks between Venezuela’s opposition and the Maduro regime is about to fail after opposition leaders refused to participate. Opposition sources say “he told us that if there is no progress over the next few days he will have to announce his withdrawal”. Zapatero appears to have proposed that the Democratic Unity (MUD) coalition back off from demanding a recall referendum against President Nicolas Maduro during 2016 in exchange for improved treatment of political prisoners. Jailed opposition leader Leopoldo Lopez rejected the offer personally delivered by Zapatero during an unprecedented prison visit and this seems to have doomed the attempt at mediation by the Spanish politician and former Presidents Martin Torrijos (Panama) and Leonel Fernandez (Dominican Republic). The fact that the Venezuelan government allowed Zapatero to visit Lopez, something it has not let any other international mission accomplish, is seen as proof that the regime is urgently trying to stop the OAS from calling in the Democratic Charter. Opposition leaders say the “dialogue” proposed serves only for the Maduro regime to gain time and avoid a recall referendum, and the distrust Zapatero whom they see as someone supporting that strategy. Maduro subsequently called Lopez an “ungrateful brute” for not accepting Zapatero’s offer. More in Spanish: (El Nacional: http://www.el-nacional.com/mundo/Zapatero-admite-fracaso-oposicion-Maduro_0_862114172.html; http://www.el-nacional.com/politica/Rodriguez-Zapatero-MUD-olvidar-revocatorio_0_862114158.html; http://www.el-nacional.com/politica/Maduro-Leopoldo-Lopez-bruto-malagradecido_0_862114185.html)

 

National Assembly majority expects to appoint new Supreme Tribunal justices before August 15th

Legislator Carlos Berrizbeitia, who heads the National Assembly’s special committee for rescuing the Supreme Tribunal, says that they hope to partially rebuild the Supreme Tribunal before August 15^th, which is the end of the Assembly’s first term. He explains the procedure will take place in 4 phases: submit arguments for revoking the decision that appointed 13 principal justices and 21 deputies; appointing a new committee for appointing the judiciary; summon and evaluate new candidates; and appointing the 34 magistrates. More in Spanish: (El Nacional, http://www.el-nacional.com/politica/MUD-aspira-nombrar-magistrados-agosto_0_862714099.html)

 

Maduro calls on Prosecutor general and judiciary to jail Miranda Governor Henrique Capriles

President Nicolas Maduro said recent protests by the opposition, headed by Miranda state governor Henrique Capriles, are madness, and called upon the judiciary, the Prosecutor general, and police to jail all those who – according to him – promote violence. He says that any talks should focus on installing a “truth commission”, respecting institutions and rejecting violence. He also criticized the opposition for not attending talks being promoted by Spain’s Zapatero, Panama´s Torrijos and the Dominican Republic’s former president Leonel Fernandez. More in Spanish: (Venevision: http://www.noticierovenevision.net/politica/2016/junio/7/159075=presidente-maduro-exhorto-a-las-autoridades-a-encarcelar-a-los-factores-que-promuevan-violencia; El Universal, http://www.eluniversal.com/noticias/politica/maduro-propone-tres-puntos-para-agenda-dialogo_313902)

 

Police used tear gas to break up student protest

Police used tear gas on Tuesday to break up an student march toward the seat of Venezuela’s CNE electoral council to demand the activation of the recall referendum against President Nicolas Maduro. The demonstration was blocked by police cordons installed on different streets of east Caracas, which forced the protesters to make a detour. After the marchers reassembled at another point along the way, the cops scattered them with tear gas bombs. “What we’re seeing is an example of the dialogue practiced by this government: bringing out the security forces to repress a demonstration,” opposition leader Henrique Capriles said in a statement. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2413869&CategoryId=10717)

 

An average 19 daily protests recorded in Venezuela due to food shortages

An average of 19 daily protests and looting incidents are being reported throughout Venezuela as nationals tried to find food staples that have disappeared from shelves amid scarcity hitting the country. On Tuesday these incidents took place in the states of Monagas (east Venezuela); Lara, Trujillo and Táchira (west); Guárico (center); Anzoátegui (northeast); and Nueva Esparta (north), according to local media. Some reports indicate people in some cases asked for sale of foodstuffs; others forcibly took food products carried by trucks. (El Universal, http://www.eluniversal.com/noticias/daily-news/protests-recorded-venezuela-due-food-shortage_313952; and more in Spanish: (Notitarde; http://www.notitarde.com/Economia/Aumentan-las-protestas-por-escasez-de-alimentos/2016/06/09/991288/; El Universal, http://www.eluniversal.com/noticias/caracas/gnb-pnb-dispersan-protesta-por-comida-california_314010)

 

Spain asks Venezuelan government, opposition to perform humanitarian aid plan

Spanish Foreign Minister José Manuel García-Margallo has urged the Venezuelan government and the opposition to jointly manage a humanitarian aid plan Spain will propose at the European Union. The initiative will be presented by García-Margallo next June 20 during a meeting of the EU Foreign Affairs Council in Brussels, Belgium. In words of the Spanish official, the objective is for the plan to be “implemented jointly” by the government here and the opposition-controlled Congress. (El Universal, http://www.eluniversal.com/noticias/daily-news/spain-asks-venezuelan-govt-opposition-perform-humanitarian-aid-plan_313960

 

Paraguay says that Venezuela needs stability to lead MERCOSUR

Venezuela “needs to have peace and stability” if it is to assume the rotating presidency of the MERCOSUR bloc, Paraguayan Foreign Minister Eladio Loizaga said on Tuesday. He said that next month’s scheduled transfer of the chairmanship from Uruguay to Venezuela will have “to take very much into account” the decision of the Organization of American States to invoke the Democratic Charter over the political situation in Caracas.
Loizaga spoke days after OAS Secretary-General Luis Almagro invoked the Charter, citing what he called “the alteration of the constitutional order” in Venezuela. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2413871&CategoryId=10717; El Universal, http://www.eluniversal.com/noticias/daily-news/paraguay-venezuela-unlikely-take-over-mercosur-presidency_313949)

 

Venezuela: free political prisoners and respect constitution, urge European MEPs

Venezuela’s government should release all political prisoners immediately and respect the constitution, including the procedures that may lead to the impeachment of the country´s President, urged the European Parliament on Wednesday. In a resolution passed by 501 votes, to 94 against with 73 abstentions, MEPs backed mediation efforts by the Union of South American Nations (UNASUR) to launch a national dialogue between Venezuela’s government and opposition.  MEPSs stress that about 2,000 people Venezuela are in prison, under home arrest or on probation for political reasons, including political leaders such as Leopoldo Lopez and Antonio Ledezma and Daniel Ceballos and that the rule of law and separation of powers are not duly respected in the country. They express “grave concern” at serious deteriorations in democracy, human rights, the economy and society. The text underlines that Venezuela faces a “serious humanitarian crisis” due to shortages of food and medicine, and that the government is preventing the entry of humanitarian aid into the country, and boycotting various international initiatives to assist civil society. It also points to the economic crisis, which it attributes to inefficient governance, and to high crime rates due to complete impunity. Finally, MEPs stress their wish to send a European Parliament delegation to Venezuela to hold a dialogue with all sectors involved in the conflict as soon as possible. (European Union: http://www.europarl.europa.eu/news/en/news-room/20160603IPR30212/Venezuela-free-political-prisoners-and-respect-constitution-urge-MEPs)

 

Venezuela is at a breaking point

Venezuela, home to the world’s biggest oil reserves, is in the throes of economic crisis. With inflation projected at nearly 300 percent this year, how do Venezuelans live amid six-hour lines for groceries, crumbling hospitals and growing violence? Nathan Crooks, Bloomberg’s Caracas bureau chief, walks Aki and guest co-host Catarina Saraiva through his daily life, how things got so bad and what’s next for the troubled country. (Bloomberg, http://www.bloomberg.com/news/audio/2016-06-08/41-venezuela-is-at-a-breaking-point)

 

 

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.

June 07, 2016

Logistics & Transport

AEROMEXICO mulls leaving Venezuela

AEROMEXICO is analyzing the possibility of stopping its flights to Venezuela, claiming the government here has not allowed it to repatriate earnings from ticket sales for the past two years. Currently, AEROMEXICO operates one daily flight between Mexico City and Caracas. “The situation is deteriorating by the second,” said Grupo AEROMEXICO general director Andrés Conesa. His statement comes days after Lufthansa and LATAM announced they were halting all services to Caracas due to Venezuela’s economic difficulties. More in Spanish: (El Financiero: http://www.elfinanciero.com.mx/empresas/aeromexico-analiza-la-posibilidad-de-salir-de-venezuela.html)

 

Oil & Energy

Paraguay rejects PDVSA’s demand for immediate debt repayment following OAS vote

The Paraguayan government has emphatically rejected a demand by PDVSA for immediate repayment of US$ 287 million in debts within 10 days. It says the demand is not valid because it clashes with “the text of an international treaty”, in reference to the Energy Cooperation Agreement signed in Caracas in 2000. Paraguay’s state oil company PETROPAR rejected a demand by PDVSA for immediate repayment of a fuel debt right after that nation called for applying the Democratic Charter to Venezuela and supported the pending recall referendum here during a meeting of the Organization of American States, Paraguay’s Trade and Industry Minister Gustavo Leite said: “Not even 20 such demands will make us back off Paraguay’s principled position on human rights,” The 2000 Energy Cooperation agreement signed in Caracas calls for a 2% yearly interest rate and a 15 year grace period. It also benefits Costa Rica, El Salvador, Panamá, Haiti, the Dominican Republic, Honduras, Nicaragua, Guatemala, Jamaica and Belize. More in Spanish: (El Universal: http://www.eluniversal.com/noticias/economia/paraguay-rechazo-intimacion-pdvsa-para-que-pague-deuda-dias_313659)

 

Economy & Finance

 

May inflation is pegged at 21.8%

The consumer price index measured by the Central Bank and the National Statistics Institute shot up in May and closed at 21.8%, the sharpest rise this year to date, according to unofficial bank sources. Year to date inflation is now at 125.7%, and inflation for the past 12 months is now at 450.7%, More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Inflacion-mayo-ubico_0_861514193.html)

Doing business in Venezuela is worse than in Syria, Haiti or Ethiopia, according to the World Bank Doing Business 2016 report, which ranks this country 186 out of 189 in the world. Only Libya, Southern Sudan and Eritrea have worse conditions. Venezuela ranked behind Afghanistan and Syria, among others, due to difficulties in paying taxes, setting up a company, border trade, registering property and obtaining electricity. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Hacer-negocios-Venezuela-Haiti-Etiopia_0_861514189.html)

 

US companies fleeing Venezuela to escape country's collapsing economy

Since 2013, when Nicolas Maduro assumed presidency in Venezuela and plunging oil prices began wreaking havoc on the country, more than a dozen U.S. companies have been forced to sell, stop or reduce their operations here in order to avoid damage cause by the economic crisis. In the past three weeks alone, COCA-COLA announced that it had to stop production in here due to a scarcity of sugar, while BRIDGESTONE, a tire company based in Tennessee, decided to sell their assets to local investors and KIMBERLY CLARK, a paper product company based in Texas, reduced its production by 90%. At least 35 companies in the Standards & Poor’s 500 have expressed concerns about Venezuela in the past two months and many have discussed removing Venezuela from its global operations, according to an analysis by USA Today. That has left Venezuela, already reeling from empty supermarket shelves and a lack of basic goods, with a dearth of American products. The U.S. companies pulling out of Venezuela say they are feeling the squeeze because of the country’s hyperinflation.  KIMBERLY and other major companies like PROCTER & GAMBLE, COLGATE, FORD, GENERAL MOTORS and MONDELEZ (OREO) opted to remove Venezuela from their global operations to avoid a direct impact on the overall company's bottom line. GENERAL MILLS sold its operations in Venezuela to local investors in March. MEAD JOHNSON, which makes infant formula, said Venezuela was its toughest market. It blamed the Venezuela for its revenues falling 6%. Since 2013, when Maduro took power, at least eight multinational companies have fled from Venezuela. Four are from the US: GENERAL MILLS, BRIDGESTONE AMERICA, EFCO and CLOROX. The others are from Italy (ALITALIA), Canada (AIR CANADA), Mexico (GRUMA) and the United Kingdom (WONDER). Just this week, Chile-based LATAM, Latin America's largest airline, announced it was suspending its flights to Venezuela because of the "difficult macroeconomic scenario" affecting the region. As the economic situation becomes worse, more could follow. The biggest problem for foreign companies is that the amount of dollars circulating in Venezuela’s economy has reduced dramatically since 2013, prompting a further tightening of currency controls. Multinational companies’ revenues remain hopelessly trapped in the local bolivar. According to local firm ECOANALITICA, the government owes U.S. companies more than US$6 billion. “To get out of this crisis the government should sit and negotiate with private companies to start producing. Other socialist presidents, like Evo Morales in Bolivia, do it,” said Alejandro Grisanti, one of the heads of Ecoanalitica. But Maduro’s government is doing the opposite. Last week, they blamed 10 private companies for the country’s current shortages. Alongside with POLAR, the biggest Venezuelan company, the list included five US firms: CARGILL, JOHNSON & JOHNSON, KIMBERLY CLARK, COLGATE PALMOLIVE and PROCTER & GAMBLE. (Fox News Latino: http://latino.foxnews.com/latino/news/2016/06/01/us-companies-fleeing-venezuela-to-escape-country-collapsing-economy/)

 

 

Politics and International Affairs

Lopez rejects Zapatero’s offer of improved jail conditions in exchange for postponing recall refendum

Spain’s former President José Luis Rodríguez Zapatero, who leads a group of three UNASUR sponsored former heads of state who are trying to broker talks between the Maduro regime and the opposition here, held an unprecedented meeting with imprisoned Voluntad Popular leader Leopoldo Lopez, the first such visit authorized for Lopez since he turned himself in to authorities in February 2014, Lopez, who is serving a 14 year sentence, later said via Twitter (which is run by his relatives) that he told Zapatero that the dialogue that is being promoted cannot take precedence over regime change. “I told him that no talks or dialogues cannot be above the greater interest of achieving a constitutional change this year, 2016”. He added that he emphasized to the former President “the importance that the dialogue cannot simply be (for the government) to gain time, because the people of Venezuela no longer have time”. Lopez’s father, Leopoldo Lopez Gil, subsequently reported that Zapatero had offered his son better imprisonment conditions for political prisoners in exchange for the recall referendum. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/leopoldo-lopez-dijo-zapatero-que-gobierno-venezuela-debe-cambiar_313505; El Nacional, http://www.el-nacional.com/politica/Leopoldo-Lopez-dialogo-cambio-constitucional_0_860914002.html: http://www.el-nacional.com/politica/Leopoldo-Lopez-Gil-Rodriguez-Zapatero_0_861514186.html)

Venezuela authorities again postpone decision on Maduro referendum

Venezuela's electoral authorities have postponed a key meeting with the opposition in which they were expected to announce whether to allow a recall referendum. After a proposed constitutional amendment to shorten his term from six to four years was rejected by the Supreme Court, the MUD launched a petition to recall him. On 2 May they handed the National Electoral Council (CNE) lists with 1.85 million signatures backing a recall referendum, many more than the 197,000 needed at this initial stage. Members of President Maduro's United Socialist Party (PSUV) allege that at least 10,000 of those signatures are fraudulent. The CNE's decision on whether it accepts the petition is therefore seen as key, even though this is only the first hurdle on the road to a recall referendum. For the recall referendum to be successful almost 7.6 million people will have to vote to oust Maduro, The country is deeply divided into those who support Maduro's socialist policies and those who oppose him, and there have been marches by both sides. But the worsening economic situation in Venezuela, which now has the world's highest inflation rate as well as shortages of basic food and power cuts, means many people who once supported Maduro are demanding change. The opposition says all its efforts to bring about change are being thwarted by the government and the judiciary, which it alleges has been stacked with supporters of Maduro. (BBC News: http://www.bbc.com/news/world-latin-america-36433535)

Opposition postpones talks with regime in the Dominican Republic pending recall process

The opposition Democratic Unity coalition (MUD) has asked UNASUR Secretary General Ernesto Samper to postpone a scheduled meeting with regime representatives in the Dominican Republic, saying it needs to await a decision by the National Elections Council (CNE) on the next step toward activating the recall referendum it is seeking against President Nicolas Maduro. Foreign Minister Delcy Rodríguez had previously announced that government representatives would attend the meeting. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/mud-solicito-diferir-encuentro-previsto-dominicana-con-gobierno_313593;Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/politica/gobierno-asistira-reuniones-oposicion/; El Nacional, http://www.el-nacional.com/politica/Delcy-Rodriguez-asistencia-Republica-Dominicana_0_860913987.html)

….and will again take to the streets protesting CNE delays

The parties and political groups that take part in the Democratic Unity (MUD) coalition are holding a number of demonstrations nationwide to ask the National Elections Council (CNE) to set a date for validation of over a million certified signatures seeking a recall referendum. MUD Secretary General Jesus Torrealba declared “the Constitution is above any bureaucratic expression of the regime’s fear”, and rejected a Supreme Tribunal sentence banning demonstrations near CNE offices. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/mud-unidad-regresara-este-martes-cne-pero-con-pueblo_313569; El Nacional, http://www.el-nacional.com/politica/Torrealba-pueblo-pedimos-paciencia-firmeza_0_861514181.html)

Maduro entreats Latin America not to isolate him

President Nicolas Maduro called upon Latin America on Saturday not to give in to "brutal pressure" from the United States to isolate his government, which is battling intensifying opposition at home and abroad. Meanwhile on Thursday a senior Brazilian official said Brazil may help block Venezuela from taking the rotating presidency of the Mercosur trade group this month, in a bid to prevent Maduro from strengthening his power. "I call upon the governments of the continent to maintain solidarity, cooperation and understanding and not to submit to ... brutal pressure to isolate Venezuela," Maduro entreated other Caribbean leaders gathered for a summit in Havana. The summit, however, did not produce a strong statement of support for Maduro, with the OAS limiting itself to backing the initiative for mediated talks between his government and the opposition. (Reuters: http://www.reuters.com/article/us-caribbean-summit-idUSKCN0YQ0RD)

Is there another way out of Venezuela's crisis?

Venezuela faces a new dilemma, albeit a relatively tame one compared to its other crises. The Organization of American States (OAS) on June 1 held an urgent meeting to discuss the political situation in Venezuela. One day earlier, the organization's secretary general, Luis Almagro, said that Venezuela could be expelled from the body. This would require a vote on the subject of Venezuela's continued unconstitutional disruption of its democratic order — a violation of the organization's charter. While the expulsion of Venezuela from the OAS carries relatively remote risk to Venezuela, a declaration that President Nicolas Maduro's government is in violation of the organization's charter would deteriorate relations between the United States and Venezuela further. The decision could also make obtaining loans from international lending organizations, including the International Monetary Fund, Inter-American Development Bank or World Bank, even more problematic because of U.S. political pressure. But an option for the government is to find another way out of the crisis. A tentative dialogue involving the United States has begun in the Dominican Republic between representatives of the Venezuelan government and the opposition coalition, though it provides no guarantee that the government and opposition will inevitably reach some arrangement to coexist politically. If the discussion does not progress over the next several months, policies for addressing Venezuela's political and economic crises will likely be decided informally between opposing factions of the PSUV, independent of any influence by the opposition. Other international factors will also play their part in the near term. But whether oil prices rise significantly or whether Venezuela's simmering social unrest boils over into larger, more frequent protests, Caracas is still very much balanced on a knife-edge. (Stratfor: https://www.stratfor.com/analysis/there-another-way-out-venezuelas-crisis?id=be1ddd5371&uuid=2f21d318-2f89-4df2-8946-6f9669324bed)

Luis Almagro: A courageous voice on Venezuela

As Venezuela has plunged into economic chaos and a humanitarian crisis, its hemispheric neighbors, including the United States, have mostly looked the other way. The remarkable exception to this dismal diplomatic record has been Luis Almagro, the secretary general of the Organization of American States, who stunned his timid fellow statesmen by proposing that the OAS formally review Venezuela’s adherence to the Inter-American Democratic Charter, a 2001 treaty that binds OAS members to democratic norms and provides for collective action when they are violated. In a 132-page letter to the OAS permanent council, Almagro documented the Maduro government’s sweeping breaches of the rule of law and the mounting humanitarian crisis caused by food, medicine and power shortages. He called for the immediate release of political prisoners and steps to repair institutions and combat corruption. Most important, he stressed that a recall referendum on Maduro, sought by the opposition and provided for in the constitution, should be held this year. “On that depends democracy in Venezuela,” the report concluded. The good news is that Almagro’ s bold action prompted the OAS permanent council to convene its first meeting on Venezuela in two years — despite the buffoonish posturing of Maduro, who called a rally in Caracas to tell Almagro to “stuff” his report. The bad news is that cowardice and crass political calculations by council members prompted it to issue another anodyne appeal for “dialogue.” The non-response was orchestrated by Argentina’s foreign minister who is hoping to be elected the next U.N. secretary general, and so is anxious to appease Venezuela and its dwindling band of allies. The Obama administration has inexplicably joined in the empty “dialogue” chorus while failing to take a position on Almagro’ s letter. As Almagro noted in his letter, political dialogue is useless without “a commitment a priori to democracy and the rule of law.” The solution in Venezuela, he rightly argued, is not talks but votes. “When the political system of a country is extremely polarized, the only solution can come from the decision of the sovereign,” says his report. On Thursday, Mr. Almagro reiterated his call for a review of Venezuela under the Democratic Charter. He’s calculating that greater diplomatic pressure could force the Maduro regime to schedule a referendum. Almagro ought to have the support of the United States. (The Washington Post: https://www.washingtonpost.com/opinions/a-courageous-voice-on-venezuela/2016/06/02/401b2f76-28e9-11e6-b989-4e5479715b54_story.html

Maduro says that if US elections “were free” Sanders would win

President Nicolas Maduro says if US elections “were free”, Democratic Senator Bernie Sanders would win them because its people want change. He says “if elections in the US were free and did not depend on an archaic 200-year old system, Bernie Sanders would be President of the United States”. He called Hillary Clinton a “comrade”, “a member of the US Bolivarian Movement”, and “militant Bolivarian”, and added he doesn’t share her views won the world, Latin America and Venezuela, but respects them. He said she has “veered toward change, but the only way she can win is by nominating a vice president from the left”. (Infolatam: http://www.infolatam.com/2016/06/01/maduro-dice-que-si-elecciones-en-eeuu-fueran-libres-ganaria-bernie-sanders/)

 

 

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.

June 02, 2016

International Trade

 

Venezuelan exports drop the most within Latin America

Latin America’s exports shrank 9% during Q1 2016, according to the Inter-American Development Bank (IABD), which reports the strongest contraction in exports took place on oil producing nations such as Venezuela, Ecuador and Colombia. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Venezuela-paises-mayor-contraccion-exportacion_0_857914349.html)

 

 

Logistics & Transport

 

International flights to and from Venezuela have dropped almost 70% since 2013

Humberto Figuera, Executive President of Venezuela’s Airline Association reports that international flights to and from Venezuela have dropped 70% since 2013, from 370 per week to 115. The government owes international airlines servicing Venezuela are owed almost US$ 3.8 billion in ticket sales at the official exchange rate. At the same time, Dante Salvatorelli, National Director of Venezuela’s Travel and Tourism Agency Association, warns Venezuela may become isolated from international air travel. His remarks came after LATAM and LUFTHANSA announced they are temporarily suspending service to this country. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/la-oferta-de-vuelos-internacionales-ha-caido-casi-.aspx#ixzz4AJy6o2d5; Notitarde; http://www.notitarde.com/Economia/Temen-que-Venezuela-quede-aislada-internacionalmente-2688230/2016/05/31/986106/; El Nacional, http://www.el-nacional.com/economia/Avavit-Tememos-quedar-aislados-Venezuela_0_857914235.html)

 

 

Oil & Energy

 

Oil tankers in limbo as Venezuela's PDVSA fails to pay BP

Four tankers carrying over 2 million barrels of U.S. crude are stuck at sea and cannot discharge at a Caribbean terminal because Venezuela's PDVSA has not yet paid supplier BP Plc, according to two sources and Thomson Reuters vessel tracking data. The cargoes are part of a tender Petroleos de Venezuela awarded in March to BP and China Oil. The deal was to import some 8 million barrels of West Texas Intermediate (WTI) crude so Venezuela could dilute its extra heavy crudes and feed its Caribbean refineries. While three cargoes for this tender were delivered in April, seven other vessels, including BP's four hired ones, are waiting to discharge, leaving up to 3.85 million barrels of WTI in limbo. (Reuters, http://www.reuters.com/article/us-oil-pdvsa-bp-idUSKCN0YM2OX)

 

 

Commodities

 

POLAR to restart beer production in July

The POLAR group of companies says it will resume beer production in July after halting operations in April for lack of malted barley amid chronic shortages here. POLAR said it has been unable to obtain dollars for imports through the socialist government's currency controls, which economists widely describe as the cause of shortages of consumer goods ranging from vital medicines to staple food products. The company, a frequent target of criticism by President Nicolas Maduro, said it had obtained a US$ 35 million loan from Spanish bank BBVA that will allow it to import barley and hops needed for brewing. (Reuters, http://www.reuters.com/article/venezuela-polar-idUSL1N18T1EQ; and more in Spanish: (Notitarde; http://www.notitarde.com/Economia/Polar-reiniciara-su-produccion-de-malta-y-cerveza-el-proximo-mes-2689093/2016/06/02/986294/; http://www.notitarde.com/Economia/Polar-recibe-credito-de-BBVA-para-reactivar-produccion-de-cerveza/2016/06/01/986170/; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/polar-recibe-prestamo-por-35-millones-para-reactiv.aspx)

 

 

Economy & Finance

 

Venezuelan credit dashboard: short-term default concerns ease

Venezuela, which has the largest crude reserves on the planet, has defied predictions of default since the oil collapse started in 2014 and analysts are split as to how long the nation of 30 million can hold out. The government and state oil company Petroleos de Venezuela SA have to pay a mere US$ 45 million in principal and interest on debt in June and only US$ 70 million in July. A bigger test comes in August, when the country has to pay US$ 1.2 billion (that amount falls to US$ 726 million when dual-currency, government TICC bonds denominated in dollars and payable in bolivars are excluded). The nation’s international reserves continued to tumble in May, falling US$ 712 million to a 13-year low of US$ 12 billion. Reserves declined US$ 523 million in April and US$ 331 million in March, according to data compiled by Bloomberg. The nation also cut its gold reserves by 16% in the first quarter, according to International Monetary Fund data. (Bloomberg, http://www.bloomberg.com/news/articles/2016-06-01/venezuelan-credit-dashboard-short-term-default-concerns-ease)

 

Venezuela’s currency has devalued 60% in 3 months

Analysts report that a 60% devaluation over the past three months is the result of a government strategy to adjust the FOREX rate to real terms, with a high inflation. The “floating” official rate DICOM has been steadily increasing and now stands at VEB 543.30/US$ 1. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Moneda-venezolana-devalua-realidad-economica_0_857914389.html)

 

 

Politics and International Affairs

 

OAS assembly votes to back talks between government and opposition in Venezuela

Following a heated 12-hour session, the 34-member nation Permanent Council of the Organization of American States has unanimously offered to help Venezuela “identify, through common agreement, a course of action that promotes seeking solutions to its situation through an open and inclusive dialogue between the government, other Constitutional authorities and all of the nation’s political and social stakeholders in order to preserve Venezuela’s peace and security with full respect for its sovereignty” and its support for “the different initiatives that seek national dialogue that in a timely, prompt and effective manner, abiding by Constitution and fully respecting human rights, lead to resolving differences and consolidating representative democracy”. The resolution does not reject a request by OAS Secretary General Luis Almagro for a Permanent Council meeting of member states to determine the need to apply the Hemispheric Democratic Charter in the case of Venezuela. At the same time, the OAS resolution supports efforts by former Presidents José Luis Rodríguez Zapatero (Spain), Leonel Fernandez (Dominican Republic) and Martín Torrijos (Panama), seeking to establish talks between the Maduro regime and the opposition to “find alternatives to promote Venezuela’s political stability, social development and economic recovery”. President Nicolas Maduro said yesterday that his regime will continue to take part in talks begun in the Dominican Republic under the auspices of the three former presidents. Henry Ramos Allup, President of Venezuela’s National Assembly says that “the mere fact that the OAS is debating Venezuela’s horrific situation is a defeat which strips the Maduro regime bare to the world”. Venezuela’s opposition coalition has asked the OAS to apply the Democratic Charter as it presses local election authorities to move forward on a recall referendum to oust President Nicolas Maduro. After the OAS meeting, President Nicolas Maduro called for nationwide demonstrations in Venezuela against “Secretary General Almagro and against imperialism”, and said “if some day we have to take up a rifle we will do so” to defend Venezuela’s sovereignty. Foreign Minister Delcy Rodríguez echoed his words and claimed a possible intervention by the OAS and the US is close at hand. (Latin American Herald Tribune: http://www.laht.com/article.asp?ArticleId=2413353&CategoryId=10718; http://www.laht.com/article.asp?ArticleId=2413391&CategoryId=10717; http://www.laht.com/article.asp?ArticleId=2413385&CategoryId=10717; Reuters, http://www.reuters.com/article/us-venezuela-politics-oas-idUSKCN0YN5NT; and more in Spanish: CNN Español: http://cnnespanol.cnn.com/2016/06/01/la-oea-discute-dos-propuestas-para-una-resolucion-de-ayuda-a-venezuela/#0; Ultimas Noticias: http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/rodriguez-venezuela-logro-victoria-en-la-oea.aspx#ixzz4AOyDttHM; El Universal: http://www.eluniversal.com/noticias/politica/maduro-algun-dia-nos-toca-tomar-fusil-tomaremos_312917; http://www.eluniversal.com/noticias/politica/delcy-rodriguez-avecina-una-intervencion-armada-pais_312872)

 

OAS Secretary General calls special meeting of OAS Council on Venezuela

OAS Secretary General Luis Almagro has published a 132-page report citing Article 20 of the Charter to call for a Permanent Council meeting of member states to determine whether there has been an "unconstitutional alteration of the constitutional regime that seriously impairs the democratic order" in Venezuela. Venezuelan opposition politicians had urged the OAS to call the meeting. The move could lead to Venezuela being suspended from the OAS. "The secretary general considers that the institutional crisis in Venezuela demands immediate changes to the Executive power," a statement by Almagro read. He thus becomes the first OAS secretary general to invoke the Democratic Charter against a member state contrary to the will of its government. The full report was delivered to the Chairman of the OAS Permanent Council. The meeting is expected to be held sometime between the 10 and 20 of June and is expected to coincide with the meeting of the OAS General Assembly in the Dominican Republic between 13 and 15 June. In his report, Almagro called on Venezuela to carry out the requested recall referendum during 2016, free political prisoners, provide security for its population, respect the constitution and separation of powers, fight corruption and incorporate the UN Commissioner for Human Rights into a recently established Truth Commission”. He also asked the Maduro regime and the National Assembly to work together to immediately solve basic human rights violations against the people, such as access to food and health services. Maduro rejected Almagro’s report and told the OAS Secretary General to put the Hemispheric Democratic Charter to a “better use” by “rolling it up in a thin tube….and sticking it up wherever you can” (BBC, http://www.bbc.com/news/world-latin-america-36416116; and more in Spanish: El Nacional: http://www.el-nacional.com/politica/Maduro-Almagro-Metase-democratica-quepa_0_857914351.html)

 

Ramos Allup chides Argentina’s Macri for about-face on Venezuela at OAS Assembly

Henry Ramos Allup, President of Venezuela’s National Assembly, has lambasted Argentina’s President Mauricio Macri for reneging on a campaign promise to apply the Democratic Charter in the case of Venezuela. In what Ramos terms an about face, Macri’s Foreign Minister Susana Malcorra – a candidate to be elected UN Secretary General – now says Argentina’s priority is to promote dialogue, and that “there is no way to solve a nation’s problem by importing an outside solution”. Ramos called the Argentine government’s position hypocritical and wrote that “at least Cristina Kirchner was sincere” in her support for the chavista regime. (El Nuevo Herald: http://www.elnuevoherald.com/noticias/mundo/america-latina/venezuela-es/article81273732.html#storylink=cpy)

 

Maduro threatens to sue National Assembly officials for requesting application of the Democratic Charter

President Nicolas Maduro says he will sue the officials of the National Assembly, headed by Henry Ramos Allup, for usurping his authority after the legislature voted to ask the OAS to apply the Hemispheric Democratic Charter on Venezuela. He accused Ramos of calling “for foreign intervention into Venezuela’s international affairs and has tried to undertake the nation’s foreign affairs which are constitutionally exclusive to the head of state, who is called Nicolas Maduro”.  He called for a broadcast trial for what he called usurping powers as well as “treason”, and said that Ramos’ initiative is “criminal”.  More in Spanish: (Infolatam, http://www.infolatam.com/2016/05/31/maduro-demandara-a-parlamento-venezolano-por-pedir-activar-carta-democratica/)

 

Almagro says OAS and other former Presidents should join UNASUR efforts on Venezuela

OAS Secretary General Luis Almagro has suggested that the organization he heads, as well as some other heads of state, should be involved in the talks between the Maduro regime and his opponents, that are being promoted by the Union of South American Nations (UNASUR) and the former presidents of Spain, the Dominican Republic and Panama. Almagro mentioned former Spanish presidents José María Aznar and Felipe González, Uruguay’s Luis Alberto Lacalle, Colombia’s Andrés Pastrana, Chile’s Sebastián Piñera, and Bolivia’s Jorge Quiroga. He suggests that “two or three” of these former heads of state and the OAS join in the efforts already begun by UNASUR. More in Spanish: (Infolatam: http://www.infolatam.com/2016/05/31/almagro-pide-sumar-a-la-oea-y-mas-expresidentes-a-dialogo-unasur-en-venezuela/)

 

IDEA backs OAS Almagro's move on Venezuela

A number of Latin American ex-presidents who signed a statement by the Democratic Initiative of Spain and the Americas (IDEA) have reiterated their concern “over the disruption of the constitutional and democratic order (in Venezuela) by the Executive Power and the Supreme Tribunal of Justice (TSJ) when disregarding a National Assembly (AN) that has been legally entrusted with the people’s sovereignty.” The former Heads of State urged the Electoral Power to observe the Constitution and set the conditions for a recall vote against the mandate of President Nicolas Maduro this year, a move that may help give peaceful, democratic, constitutional and electoral solutions to the serious institutional, political and humanitarian crises facing the country. They also asked the government “to release political prisoners, guarantee the people’s right to take part democratically in referendums, and respect the decisions of the National Assembly.” (El Universal, http://www.eluniversal.com/noticias/daily-news/idea-backs-oas-almagros-move-venezuela_312834)

 

Cardinal Urosa urges Maduro to revoke state of emergency and enter talks

Caracas Archbishop Cardinal Jorge Urosa has publicly asked President Nicolas Maduro to revoke the state of emergency and enter talks with the opposition, He said the emergency powers Maduro invoked last month “do nothing to solve the problems of the Venezuelan people” and “make the political, social and economic situation worse”.  More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/urosa-pidio-maduro-derogar-estado-excepcion-recurrir-dialogo_312927)

 

IAHRC fears state of emergency threatens democracy

The Inter American Human Rights Commission says it is concerned that the state of emergency decreed by Venezuelan President Nicolás Maduro can “endanger respect for the rule of law and the independence of powers”, “grants the executive power discretionary powers” and “through broad and ambiguous wording” can open the door to abuses. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/cidh-teme-que-estado-excepcion-atente-contra-democracia_312949)

 

Drive to oust Venezuela's Maduro returns old foe to front line

Sweating, hoarse and jostled at every turn, opposition leader Henrique Capriles is back pounding Venezuela's streets, exhorting crowds and fuming about corruption and shortages. Capriles' profile faded after his failed presidential runs in 2012 and 2013 but the Miranda state governor is again on the political front line, this time driving an opposition push for a referendum to remove President Nicolas Maduro. "The only way to fix Venezuela's crisis is asking Venezuelans," he told Reuters after a day campaigning in the pressure-pot nation reeling from economic hardships, protests and viciously polarized politics. (Reuters, http://www.reuters.com/article/us-venezuela-politics-capriles-idUSKCN0YN4W2)

 

National Assembly President warns Supreme Tribunal may block recall vote

National Assembly President Henry Ramos Allup says he has information that the Venezuela’s Supreme Tribunal will issue a sentence against the recall referendum that is being requested to revoke President Nicolas Maduro’s term of office this year. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/ramos-allup-inminente-sentencia-del-tsj-para-que-haya-revocatorio_312682; El Nacional, http://www.el-nacional.com/politica/Ramos-Allup-TSJ-maniobra-revocatorio_0_857914450.html)

 

Opposition to meet with election officials on Thursday about recall

A commission of opposition lawmakers who visited the offices of Venezuela’s National Electoral Council, or CNE, to press for a recall referendum against socialist President Nicolas Maduro has been granted a meeting with election officials on Thursday. “We’ve been officially informed by the National Electoral Council that a meeting will be held tomorrow with the Democratic Unity coalition (MUD) to review the report” on the signature-gathering stage, lawmaker Enrique Marquez said. Marquez, who is the first vice president of the opposition-controlled National Assembly, visited the CNE along with seven other anti-government lawmakers to demand that the electoral authority’s president, Tibisay Lucena, “remove the barriers preventing the recall referendum from being held this year.” (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2413464&CategoryId=10717)

 

Spain’s Foreign Minister says “lawfulness and Maduro are contradictory terms”

Spain’s Foreign Minister José Manuel García-Margallo says “lawfulness and Maduro are contradictory terms”, after it was reported that Venezuela’s President will take legal action against Spain to put a stop to a “psychological warfare campaign” he claims is being waged against his country. García-Margallo said is “not much” worried over any action and added that if Maduro “wants to apply lawfulness the best thing he can do is apply it in his country, admitting his citizens constitutional right to call for a recall referendum”. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/politica/canciller-espanol-legalidad-maduro-son-conceptos-contradictorios_312905)

 

 

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.