International Trade
Major General Efraín Velasco Lugo named head of the
national port authority, BOLIPUERTOS
President
Nicolas Maduro has named Major General Efraín Velasco Lugo as the new president
of the Bolivarian ports (BOLIPUERTOS). He also announced he is designating a
single authority for each port: Real Admiral Carlos Martín at La Guaira (Vargas
state); General Rafael José Aguana at Puerto Cabello (Carabobo state); General
José Noguera Silva at Maracaibo (Zulia state); Rear Admiral Andrés Rojas at Guanta
(Anzoátegui state) and General Luciano Marquina at El Guamache (Nueva Esparta
state). More in
Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/designan-al-mayor-general-velasco-lugo-nuevo-presi.aspx#ixzz4EHbQzADI; http://www.elmundo.com.ve/noticias/actualidad/noticias/presidente-juramento-a-las-autoridades-unicas-de-c.aspx#ixzz4ENYDK5uW; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/economia/designan-mg-velasco-lugo-presidente-bolipuertos/; El Universal, http://www.eluniversal.com/noticias/economia/maduro-ordena-restructuracion-cinco-puertos_319115)
SÍRAGON exports Venezuela-made PC's for the first time
Venezuelan
technology products manufacturer SÍRAGON has for the first time exported its
top-of-the-range product named All in One PC 7100 Series for sale in several
Central American countries. Venezuela will dispatch a number of these computers
to Panama, from where they are to be sent to Central American countries such as
Nicaragua, Costa Rica and Guatemala. (El
Universal, http://www.eluniversal.com/noticias/daily-news/siragon-exports-venezuela-made-pcs-for-the-first-time_319037)
Over 200,000 tons of raw materials for agribusiness
have arrived at Puerto Cabello this month,
according to Nutrition Minister General Rodolfo Marco Torres. General Marco
reports that 14 ships have arrived bearing white and yellow corn, soy cakes,
paddy rice, raw sugar, baking wheat and durum wheat. He reports there are
another 5 ships waiting to offload at least another 100,000 tons, 80% of which
will go to the private sector. More in
Spanish: (Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/arribaron-puerto-cabello-m%C3%A1s-200-toneladas-materia-prima-para-agroindustria; El Mundo, http://www.elmundo.com.ve/noticias/economia/agro/arribaron-al-pais-228-mil-toneladas-de-materia-pri.aspx)
Ship bearing 200 tons of food from Trinidad arrived at
Cumaná. The shipment is part of 506 tons purchased from
neighboring Trinidad for Sucre state in Eastern Venezuela, and includes
chicken, flour, sauces and milk, as well as personal care and cleaning
products. Sucre state governor Luis Acuña said the transaction with Trinidad
includes 106 tons flown in, and 400 tons by sea. More in Spanish: (Agencia
Venezolana de Noticias; http://www.avn.info.ve/contenido/buque-cargado-200-toneladas-alimentos-arrib%C3%B3-cuman%C3%A1)
Maracaibo’s port received 16 tons of corn for chicken
feed, says Zulia state governor Colonel Francisco Arias
Cárdenas. The shipment was imported by private business, and will be
distributed to chicken farms around the region. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/zulia-recibe-16-toneladas-de-maiz-para-producir-al.aspx#ixzz4EHdE2tNj;
Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/economia/zulia-recibe-16-toneladas-maiz-producir-alimento-pollos/)
Oil & Energy
Venezuela’s oil production fell to 13-year low in June,
IEA says
Venezuelan
crude production fell to a 13-year low last month as an economic crisis weighed
on this country’s oil industry, the International Energy Agency said. Output
sank to 2.18 million barrels a day, down 240,000 barrels a day from a year
earlier and the lowest since February 2003 when an oil workers’ strike trimmed
volumes. The drop in production is set to continue, with the IEA forecasting an
annual slump of 200,000 barrels a day, double the decline it predicted last
month. “While Iran is clearly OPEC’s
biggest source of supply growth this year, Venezuela is notching up the largest
decline,” the agency said in its monthly report on Wednesday. Iranian
production rose to 3.66 million barrels a day in June, maintaining gains seen
since the start of the year when international sanctions were lifted.
(Bloomberg, http://www.bloomberg.com/news/articles/2016-07-13/venezuela-s-oil-production-fell-to-13-year-low-in-june-iea-says)
PDVSA issued US$ 831 million in debt to pay providers
this year
State
oil company PDVSA has issued US$ 831 million in promissory notes this year to repay
debts to service providers, according to its latest financial statement. The
notes, with an interest rate of 6.5%, mature in 2019, the company said in its
2015 financial statement. PDVSA has run up over US$19 billion in unpaid bills
to service providers as a result of cash-flow problems, which has led some
companies to slow work. PDVSA began negotiating private issuances last year to
settle years-old suppliers' bills, with at least US$ 310 million of notes in
2015 to companies including General Electric Co. (Reuters, http://www.reuters.com/article/pdvsa-debt-idUSL1N19Z0MY)
PDVSA finds procurement fraud in U.S. case
PDVSA
is investigating U.S. allegations of a US$ 1 billion bribery conspiracy
involving the state oil company and has found there was fraud in procurement
processes, according to a report of its 2015 results. PDVSA, the financial
motor of President Nicolas Maduro's socialist government, had previously
blasted the Houston court case against two Venezuelan businessmen as part of a
smear campaign by opponents trying to link it to corruption. But PDVSA's
audited financial statement, published this week, said an internal probe "confirmed the company was a victim of fraud
in its process of international procurement." The two businessmen,
Abraham Shiera and Roberto Rincon, have pleaded guilty after being arrested
last year and charged for conspiring to pay bribes for energy contracts. (Reuters,
http://www.reuters.com/article/venezuela-usa-corruption-idUSL1N19Z1H9)
Venezuela, Trinidad and Tobago continue with gas
projects
Representatives
of Venezuela and Trinidad & Tobago have met this week to continue with
bilateral gas agreements previously signed as part of the development of
offshore reserves at the Campo Dragón, “Mariscal Sucre” project, 40 km north
off Sucre state. They confirmed the agreements struck on May 24 in Port of
Spain apropos the visit paid by President NicolAs Maduro, when they agreed on
gas exports from Venezuela to Trinidad and Tobago. (El Universal, http://www.eluniversal.com/noticias/daily-news/venezuela-trinidad-and-tobago-continue-with-gas-projects_327501)
Bolivia's Morales admits issues in PETROANDINA
Bolivian
President Evo Morales has admitted that oil joint venture PETROANDINA is facing
economic troubles, and that Bolivia is likely to take charge of this situation.
PETROANDINA is comprised of state-owned oil companies YPFB of Bolivia (60% of
interests) and Petróleos de Venezuela (PDVSA-40%). “PETROANDINA was an agreement with PDVSA, yet difficulties have arisen.
(This situation) is under study; we will likely overcome it, as was the case
with other companies facing problems and the State took over,” Morales said
during a press conference. (El
Universal, http://www.eluniversal.com/noticias/daily-news/bolivias-morales-admits-issues-petroandina_318989)
Commodities
Venezuela trucks food directly to the poorest as chaos
spreads
Catia,
a vast network of makeshift homes in western Caracas, has long been a proud
bastion of Venezuelan socialism. The residents may be working class but their
housing is subsidized, their clinics free, their favorite color ruling-party
red. Red T-shirts were everywhere in Catia one recent morning but not for
another ribbon cutting. This time, loyalists were unloading a government truck
packed with food for once-resolute supporters whose pantries are achingly
empty. “Since they told me last night it
was on its way, I could barely sleep,” said Andrea Vasquez, a 40-year-old
call center operator, who watched as dozens of her neighbors swarmed the truck.
“It’s a miracle.” (Bloomberg, http://www.bloomberg.com/news/articles/2016-07-13/as-chaos-spreads-venezuela-trucks-food-directly-to-the-poorest)
Venezuela will distribute “consumer cards” to the poorest
Executive
Vice President Aristóbulo Istúriz says the Venezuelan government plans to issue
“consumer cards” to the poorest, so
that they can acquire basic goods at subsidized prices. “We hope to deliver some 500,000 cards in the first stage”, he said.
More in Spanish: (Infolatam: http://www.infolatam.com/2016/07/13/venezuela-dara-tarjetas-de-consumo-a-los-mas-pobres-para-productos-basicos/)
Economy & Finance
CITIBANK decision will impact SIMADI FOREX operations
CITIBANK’s
decision to shut down Venezuela’s Central Bank and the Bank of Venezuela’s
accounts with the institution will impact SIMADI operations in the FOREX
market, since all transactions are carried out by the Central Bank through
CITIBANK. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/banca/medida-del-citibank-afectara-operaciones-en-el-sim.aspx#ixzz4EHbeMNkj)
Wall Street’s biggest Venezuela bond contrarian feels
vindicated
While
Wall Street analysts and investors have braced for Venezuela’s default in the
past three years, Francisco Rodriguez has remained steadfast in his belief
that the country would pay. Now, his contrarian view is winning converts. The
nation’s bonds have returned 28% this year -- twice the average gain for
emerging markets. Debt investors are betting that Venezuela’s economic crisis
will finally help force President Nicolas Maduro from office and usher in a new
government capable of making the desperately needed policy changes to avert a
total collapse.
Rodriguez, who took
up his new role as chief economist at Torino Capital last week after leaving
Bank of America Corp. in May, says a new government is likely to make
changes including re-establishing market access and offering a voluntary
rollover of debt. (Bloomberg, http://www.bloomberg.com/politics/articles/2016-07-12/wall-street-s-biggest-venezuela-bond-contrarian-feels-vindicated)
Secret police detains KIMBERLY CLARK staffers for
interrogation
Venezuela’s
secret police (SEBIN) has detained and interrogated 8 KIMBERLY CLARK employees
demanding the whereabouts of company managers, according to a source that did
not want to be identified. The company had “6
members of the board and a general manager, all of whom have left the country.
There was a national sales manager and seven account managers under them, all
of whom have been held for interrogation”. The national sales manager is
still being held at Valencia, in Carabobo state. Yirven Laucho, Secretary
General of the company union, confirmed the information. He says there is still
work going on at the plant located at San Vicente in Aragua state, which was
occupied by government forces last Monday, and only one of the 7 production
lines is operating, turning out KOTEX protection pads. He says the government
will provide raw material. Executive Vice President Aristobulo said the owners
“can come back when conditions change,
but he will not find a plant, that plant is no longer his, he has already lost
it. Any plant that shuts down we will take over with the workers”. More in
Spanish: (El Nacional: http://www.el-nacional.com/economia/Sebin-empleados-Kimberly-Clark-interrogarlos_0_883711842.html)
Politics and International Affairs
Catholic bishops say delaying recall referendum can
destabilize Venezuela
Venezuela’s
Episcopal Conference (CEV) has urged the National Elections Council (CNE) to
let the recall referendum to revoke the mandate of President Maduro take place
this year, and says “delaying it” can
destabilize the nation politically and socially. “It is the CNE’s duty to tend to the recall referendum so that it can
take place this year…it is a political right mandated by the Constitution, to
block it or delay it with multiple obstacles is absurd because it endangers the
nation’s political and social stability”, said CEV spokesman Bishop Ubaldo
Santana, who again offered the Roman Catholic Church’s “good offices” for a dialogue between both sides. More in Spanish:
(Infolatam: http://www.infolatam.com/2016/07/12/iglesia-venezolana-dice-que-retrasar-revocatorio-puede-desestabilizar-al-pais/)
Ramos Allup says recall referendum is a right and will
not be “bargained” in any talks
National
Assembly President Henry Ramos Allup says that the recall referendum being
sought by the opposition to revoke President Nicolas Maduro’s mandate will not
be “bargained” in any possible talks,
and that the President has asked to talk to get out of a jam “by throwing cold water on the situation”.
“The recall referendum has nothing to do
with talks, the recall is a Constitutional right” of the Venezuelan people and
does not “belong” to anyone”, he says. Ramos says the opposition is not
refusing to talk but will only do so under “respectable
conditions” and if Constitutional rights are guaranteed. Maduro has again
called on the opposition to enter into talks, while saying the recall
referendum is a “no go” and cannot be
a precondition for starting talks. “What
are they seeking? A war?”, says Maduro. More in Spanish: (Infolatam: http://www.infolatam.com/2016/07/13/ramos-allup-dice-que-revocatorio-no-se-regateara-en-un-potencial-dialogo/)
Opposition state governors ask Zapatero to include
social problems in talks
Two
opposition state governors have met with Spain’s former President José Luis
Rodríguez Zapatero, to ask social problems the people are facing be included if
there is a dialogue between the Maduro regime and the opposition. Lara state
governor Henri Falcón says talks must include matters such as “medicines and services, violence, security
and food.” The opposition has continued to insist on preconditions for
sitting down to talks with the government, including expanding mediation
efforts to include the Vatican, holding the meetings in Venezuela, an end to “illegitimate” arrests, the recall
referendum and recognizing the National Assembly. (Latin American Herald
Tribune, http://www.laht.com/article.asp?ArticleId=2416313&CategoryId=10718;
http://www.laht.com/article.asp?ArticleId=2416208&CategoryId=10717;
and more in Spanish: Infolatam: http://www.infolatam.com/2016/07/12/gobernadores-opositores-piden-a-zapatero-incluir-temas-sociales-en-el-dialogo/)
Venezuela insists MERCOSUR pro tem chair is not
subject to a consensus
Foreign
Minister Delcy Rodríguez is insisting that passing over MERCOSUR’s rotating pro
tem chairmanship to Venezuela should not be subject to “any type of consensus” or “condition”.
However, Paraguay, Argentina and Brazil and holding off on transferring the
chair of the organization to the Maduro regime because it does not comply with
MERCOSUR rules on human rights. Only Uruguay, which currently holds the chair,
has been favorable to passing the position over to Venezuela. The matter
continues under discussion and may be held over until August. More in Spanish:
(Infolatam: http://www.infolatam.com/2016/07/12/venezuela-dice-traspaso-de-presidencia-del-mercosur-no-esta-sujeto-a-consenso/)
OAS Almagro: Democratic Charter aims to reorient
democracy in Venezuela
Luis
Almagro, Secretary General of the Organization of American States (OAS) says that
the Democratic Charter aims to seek solutions “to redirect democracy rather than to punish” Venezuela. Almagro, a
former Uruguayan foreign minister, added that the process for the eventual
enforcement of the Democratic Charter is under way. However, he stated that the
ultimate goal is not applying such legal instrument, for it would lead to
Venezuela’s suspension from the regional organization. (El Universal, http://www.eluniversal.com/noticias/daily-news/oas-almagro-democratic-charter-aims-reorient-democracy-venezuela_327486)
Children dying in Venezuelan hospitals
Hospitals
in Venezuela are rapidly decaying with a lack of resources such as medicine,
endangering the lives of sick patients. CNN's Paula Newton reports (Video
Report:http://edition.cnn.com/videos/world/2016/07/13/venezuela-kids-going-without-pkg-newton.cnn)
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.
