Economics &
Finance
59% of dollar revenue goes to pay
for imports
Central Bank President Nelson Merentes revealed that their
year-end report shows imports totaled U$D 56.35 billion in 2012, the highest
amount in the last 16 years and that this was 59% of Venezuela's FOREX revenue from
exports. (El Universal,
01-03-2013; http://www.eluniversal.com/economia/130103/venezuela-allocates-59-of-dollar-revenue-to-pay-for-imports)
Only half of 2012 oil revenue went
to the Central Bank
Official data shows that only half of Venezuela's oil
dollar income, U$D 46 billion, went to the Central Bank. The remainder went to
funds managed freely by the government, such as the National Development Fund
(FONDEN). (El Universal,
01-02-2013; http://www.eluniversal.com/economia/130102/pdvsa-transfers-to-central-bank-only-half-of-oil-revenue-in-2012)
"FOREX board must turn the tap on to ensure supplies"
According to Luis Vicente León, who heads the DATANALISIS
research firm supply will be vital in Venezuela in 2013, a likely election year
given President Hugo Chávez's delicate health status, and it is essential to
increase foreign currency allocation in order to ensure supplies and avoid
scarcities. (El Universal,
01-03-2013; http://www.eluniversal.com/economia/130103/forex-board-has-to-turn-the-tap-on-to-ensure-supply)
SITME opens 2013 operations with U$D
15 million sales
SITME bid U$D 15 million in its first operation in 2013,
compared to the first 11 months of 2012 when it traded a daily average of U$D
40 million. The average fell to U$D 18 million daily in December. Financial
sources report the Central Bank does not have enough bonds to keep up the daily
average. More in Spanish: (El Universal, 01-03-2013; http://www.eluniversal.com/economia/130103/el-sitme-inicia-el-ano-con-la-venta-de-15-millones-de-dolares)
Central Bank says reserves are up
U$D 3.596 billion,
for a total of U$D 29.743 billion. More in Spanish: (El Mundo, 01-04-2013; http://www.elmundo.com.ve/noticias/economia/politicas-publicas/bcv-reporta-un-incremento-en-las-reservas-de-$3-58.aspx)
Central government debt up to U$D
100.964 billion
Data from the Planning and Finance Ministry shows 2012 ended with total
indebtedness by the central government up to U$D 100.964 billion, 27.3% above
the U$D 79.282 billion for 2011. The figure does not include debt totals for
state enterprises such as PDVSA, which would raise the national total
significantly, and no information has been made available about them. Central
government debt rose mainly due to domestic bond issues. More in Spanish: (Últimas
Noticias, 01-04-2013; http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/la-deuda-del-gobierno-asciende-a-100-964-millones-.aspx)
Commodities
Chavez cancer imperils U$D7 billion
Caribbean oil funding
President Hugo Chavez’s battle with cancer threatens U$D 7 billion of
subsidized oil exports that help prop up Cuba’s economy and contain inflation
in Caribbean nations from Jamaica to the Bahamas. Chavez, hospitalized in
Havana after a fourth operation, sent Cuba U$D 3.6 billion of oil in 2011
through the PETROCARIBE program that serves 70 million people across Central
America and the Caribbean. Cuba failed to make discoveries in the first
offshore drilling effort since 2004 as Repsol SA, Petroliam National Bhd. and
Petroleos de Venezuela SA reported dry wells. (Bloomberg, 01-03-2013; http://www.bloomberg.com/news/2013-01-03/chavez-cancer-imperils-7-billion-caribbean-oil-funding-energy.html)
International Trade
Trade with Colombia projected to
rise by more than 30% in 2013
Luis Alberto Russian, CEO of the Venezuelan-Colombian
Economic Integration Chamber (CAVECOL), says that according to estimates by affiliated
companies binational trade between the two countries this year will continue
the 2012 upward trend and could increase between 30 and 35%. More in Spanish: (El
Universal, 01-03-2013; http://www.eluniversal.com/economia/130103/intercambio-con-colombia-se-elevara-en-mas-del-30)
Venezuela among Uruguay's main export
markets
Brazil, China, Argentina, Venezuela and Russia were the main markets for
Uruguayan exports in 2012. Venezuela came in fourth as a destination for U$D
406 million in sales, an increase of 24.7% over 2011, and 4.6% of total exports.
More in Spanish: (El Universal, 01-03-2013; http://www.eluniversal.com/economia/130103/venezuela-entre-los-principales-mercados-para-uruguay)
Logistics
& Transport
Port
service charges have been adjusted
The Ministry for Aquatic and Air Transport has adjusted
port service charges for ships and related services, which are to be set in
dollars, "according to international
standards, but payments will be made in national currency". This means
any exchange adjustment will become a higher cost for importers. More in
Spanish: (El Universal, 01-04-2013; http://www.eluniversal.com/economia/130104/ejecutivo-nacional-ajusto-tarifas-de-los-servicios-portuarios)
VEB 1.7 billion investment planned
for airport improvements in 2013
National Civil Aeronautics Institute President General Francisco Paz,
says VEB 580 million were invested in repaving runways and improving
infrastructure during 2012 and that an additional VEB 1.7 billon have been
budgeted for 2013 in order to continue improvements. More in Spanish: (El
Universal, 01-04-2013; http://www.eluniversal.com/economia/130104/gobierno-invertira-bs-1700-millones-en-mejorar-aeropuertos)
Politics
Chávez has difficulty breathing due
to severe lung infection
Ernesto Villegas, Minister for Communications and
Information, announced that President Chavez is suffering from a "severe lung infection", after being
undergoing cancer surgery in Havana on December 11th. "After a serious operation last December
11th, commander Chavez has suffered complications due to a severe lung
infection which has caused difficulties in breathing which require strict
medical treatment", said the Minister in a two minute broadcast. More
in Spanish: (El Nacional, 01-04-2013; http://www.el-nacional.com/;
El Universal, 01-04-2013; http://www.eluniversal.com/nacional-y-politica/130104/presidente-sufre-insuficiencia-respiratoria)
Maduro and Cabello claim to be
"more united than ever"
Vice President Nicolás Maduro and National Assembly
President Diosdado Cabello put in a joint appearance right after returning from
a trip to Cuba and claimed to be "more
united and brotherly than ever", in order to stem rumors that they are
in feuding. Maduro, a civilian, was nominated by Chavez as his successor before
leaving for Havana for his fourth cancer operation. Cabello is due to take over
as acting President on January 10th if Chavez is absent, provided he is
reelected as President of the National Assembly on January 5th. Former
Lieutenant Cabello added: "The
President has called for revolutionary unity and we will not be taken out of
that position". Cabello has convened a session Saturday, Jan. 5. in
order to elect the parliament's board of directors and start a new period.
(AVN, 01-03-2013; http://www.avn.info.ve/contenido/parliament-elect-new-directors-next-jan-5;
and more in Spanish: El Universal, 01-04-2013; http://www.eluniversal.com/nacional-y-politica/130104/maduro-y-cabello-aseguran-estar-mas-unidos-que-nunca)
Potential disputes brewing ahead of
Chavez inauguration if he is too sick to attend
President Hugo Chavez is due to be sworn in for a new
term on January 10th and his closest allies still aren’t saying what they plan
to do if the ailing leader is unable to return from a Cuban hospital to take
the oath of office. Chavez hasn’t been seen or heard from since his Dec. 11
cancer surgery, and speculation has grown that his illness could be reaching
its final stages. The president’s elder brother Adan joined a parade of
visitors to Havana this week, while the vice president has returned after at least
two bedside visits with Chavez. His health crisis has raised contentious
questions about the swearing-in set for Jan. 10, including whether the
inauguration could legally be postponed, whether Supreme Court justices might
travel to Havana to administer the oath of office, and, most of all, what will
happen if Chavez can’t begin his new term. (The Washington Post, 01-03-2013; http://www.washingtonpost.com/world/the_americas/potential-disputes-brewing-ahead-of-chavez-inauguration-if-venezuela-leader-too-sick-to-attend/2013/01/03/f41d4c38-55cb-11e2-89de-76c1c54b1418_story.html;
CNN, http://edition.cnn.com/2013/01/03/world/americas/venezuela-chavez-scenarios/index.html?iref=allsearch;
Fox News, http://www.foxnews.com/world/2013/01/03/potential-disputes-brewing-ahead-chavez-inauguration-if-venezuela-leader-too/;
http://www.foxnews.com/world/2013/01/02/chavez-delicate-after-cancer-surgery-says-vice-president/)
Chavez foes want Vice President to take
power
Venezuela’s opposition say cancer- stricken President
Hugo Chavez is unable to fulfill his duties and that the government should
temporarily hand his full powers over to Vice President Nicolas Maduro. Ramon
Guillermo Aveledo, executive secretary of the opposition alliance known as the
Democratic Unity Table, said the government should “tell the truth” about Chavez’s state of health. Chavez, who is
supposed to be sworn in for his next term on Jan. 10, hasn’t been seen in
public since alighting from a plane in Havana Dec. 10 to undergo a fourth
cancer-related surgery. (Bloomberg, 01-02-2013; http://www.bloomberg.com/news/2013-01-02/maduro-to-return-to-venezuela-after-chavez-cuba-visit.html)
Venezuelan high court: no need to
clarify the inauguration date
As January 10 approaches, discussions over the option of
postponing the swearing in ceremony have sparked up. There is growing
expectation about the decision pending in the Supreme Court's Constitutional
Court, where two petitions for a ruling have been lodged. Article 231 of the
Venezuelan Constitution, sets January 10 as the start of a new presidential
term. Nevertheless, the high court has previously ruled that the inauguration
of the Head of State in the Legislature should take place on that very day,
neither before nor after. (El Universal, 01-03-2013; http://www.eluniversal.com/nacional-y-politica/130102/venezuelan-high-court-no-need-to-clarify-the-inauguration-day)
Washington rules out "made in America" solution for
Venezuela
State Department spokeswoman Victoria Nuland, has confirmed that
Washington has contacted both the Venezuelan government and opposition, but
said the US Government is not involved in a possible political transition in
Venezuela due to the state of health of President Hugo Chávez. "Obviously we talk to Venezuelans of the
whole political spectrum, as we do with every country in the world. Any
political transition in Venezuela has to be the result of decisions by
Venezuelans, there is no 'made in America' solution", said Nuland at a
press conference. (El Universal, 01-03-2013; http://www.eluniversal.com/nacional-y-politica/130103/washington-rules-out-made-in-america-solution-for-venezuela;
http://www.eluniversal.com/nacional-y-politica/130101/us-venezuela-are-reportedly-seeking-post-chavez-thaw)
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.
