Tag Archives: Central Bank

Dec
7
2012
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In Case You Missed It… Articles Roundup Week of 12/7/12

yv 1003 5 300x199 In Case You Missed It… Articles Roundup Week of 12/7/12

Courtesy of: AFP

This week: a likely devaluation and spending cuts look set to decrease Venezuelans purchasing power; the Venezuelan Central Bank reports November’s inflation rate was the nation’s highest in 16 months; despite the oil boom in Venezuela, Chávez has failed to alleviate poverty, which has only dropped 4.1 percent over a five year period; the Chávez administration named 15 new ambassadors via twitter; violence remains rampant as 45 bodies were taken to the Caracas morgue over the weekend; the state-run Venezuelan airline, Conviasa has been banned from flying in the European Union due to safety reasons. Meanwhile, Norway will close its Venezuelan embassy after 45 years in Caracas, citing rampant crime; according to a recent Transparency International study, Venezuela is the most corrupt nation in Latin America and one of the most corrupt nations in the world; Chávez’s continued absence causes more speculation over his health. Finally, after a canceled appearance at the Mercosur summit this week, Chávez returns to Venezuela after a ten day medical trip to Cuba.

Likely devaluation and spending cuts are to curb consumption in Venezuela, El Universal

In the third quarter, Venezuelan households’ consumption hit its highest level ever since 1998, as well as a 7.8% leap over the same period in 2011, according to the numbers disclosed by the Central Bank of Venezuela (BCV).

Venezuela Names 15 New Ambassadors, Via Twitter, The Wall Street Journal

CARACAS—Venezuela President Hugo Chávez, who will be in Cuba for an undetermined period receiving follow-up treatment after his battle with cancer, named 15 new ambassadors to countries in the region, the Middle East and Africa, Information Minister Ernesto Villegas announced Monday.

A total of 45 bodies are taken to Caracas morgue in the weekend, El Universal

As many as 45 bodies had been taken to Bello Monte morgue in Caracas from Friday morning through Monday morning, according to unofficial sources. The body of Roberto José Pinto, 29, a detective of the Scientific, Criminal and Forensic Investigation Agency (Cicpc), was added to the weekend account.

Venezuela is headed for economic adjustments despite oil boom, El Universal

The last thing one expects from people who have won the lottery is that after six years their debts are higher, they are having difficulties to meet daily expenses, and they have slightly reduced poverty.

Venezuela’s Conviasa blacklisted by the European Commission, El Universal

The European Commission on Thursday updated the blacklist of airlines that have been banned from flying on the European Union due to safety reasons. Venezuelan state-run airline Conviasa has been included in the list.

UPDATE 2-Venezuela’s November inflation was highest in 16 months, Reuters

CARACAS, Dec 4 (Reuters) – Venezuela’s monthly inflation accelerated to 2.3 percent in November, the central bank said on Tuesday, the highest rate in more than a year.

Citing Crime, Norway to Close Venezuela Embassy, ABC News

Norway will close its embassy in Venezuela because of rampant crime in the South American country and move the diplomatic mission to neighboring Colombia, its ambassador said Wednesday.

Corruption Perception Index Ranks Venezuela as One of World’s Most Crooked Countries, Fox News Latino

Venezuela is the most corrupt nation in Latin America and one of the most crooked countries in the world, according to an NGO annual report. The Andean nation ranked 165 out of 174 nations on Transparency International’s 2012 Corruption Perception Index.

Chavez’s Longest Silence Since Cancer Fuels Health Rumors, Bloomberg Businessweek

Venezuelan President Hugo Chavez’s longest absence from public view since he first underwent cancer surgery 18 months ago is fueling speculation that his health is worse than he’s letting on.

Chavez back in Venezuela after Cuba treatment, USA Today

Venezuela (AP) — Venezuelan President Hugo Chavez arrived back home in Caracas early Friday after 10 days of medical treatment in Cuba. State television showed images of Chavez arriving at Caracas’ airport and walking down the steps of the presidential jet wearing a track suit.

 
Jun
29
2012
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ICYMI: Venezuela court orders embargo on channel’s assets

CBS Money Watch
June 29, 2012

CARACAS, Venezuela — Venezuela’s Supreme Court on Thursday ordered an embargo on nearly $5.7 million in assets belonging to a television channel that takes a critical line against President Hugo Chavez’s government. The decision came as regulators sought to force the channel to pay a fine totaling more than $2 million.

The Supreme Court said in a statement that it had ordered an embargo on Globovision’s assets totaling 24.4 million bolivars, or $5.7 million.

The channel has been trying to challenge the fine imposed by regulators for its coverage of a prison uprising last year. But Ricardo Antela, a lawyer for the news channel, said it now plans to pay to original fine to avoid a larger penalty.

“There are only two options left: pay the fine of 9 million bolivars ($2.2 million) or expose ourselves to an embargo of almost 25 million,” Antela said. If Globovision were to face the higher penalty, he said, it could lead to the “the closing of the channel.”

He said that Globovision’s executives have decided since “there isn’t going to be justice in this case,” they will go to court to pay the original fine on Friday. Antela said they also plan to pay interest as determined by the Central Bank.

Once the fine is paid, the court’s order of an embargo on assets should be lifted, he said. The lawyer said the court had ordered a jury to convene to formally put in place the embargo on Globovision’s assets.

The court said it had responded to a request by the National Telecommunications Commission due to the channel’s failure to pay the fine initially imposed in October. Government officials did not immediately comment on the court’s decision.

Globovision, a 24-hour news network, has been the only anti-Chavez channel on the air since another opposition-aligned station, RCTV, was forced off cable and satellite TV in 2010. RCTV had been booted off the open airwaves in 2007.

Telecommunications regulators last year imposed the fine against Globovision accusing it of “apologizing for crime,” “altering the public order” and promoting political intolerance during its coverage of an intervention by troops to quash rioting at El Rodeo prison.

The commission’s director general, Pedro Maldonado, said at the time that for four days Globovision broadcast 18 emotional reports with relatives of the prisoners and repeated them almost 300 times, adding the sound of gunfire over the reports.

The June 2011 prison riot erupted after troops raided one of two adjacent prisons looking for weapons. The raid set off gunfights that left three dead, and the standoff finally ended with negotiations after 27 days. Authorities said four inmates who escaped also were slain by soldiers.

Globovision has accused Chavez’s government of trying to shut it down, and has said it did nothing wrong.

Globovision still has three pending appeals seeking to challenge the fine, while two have been rejected by courts, Antela said. The Supreme Court previously upheld the $2 million fine against Globovision in March.

The channel’s majority owner, Guillermo Zuloaga, fled into exile in 2010 after a court issued an arrest warrant on charges of usury and conspiracy. He has accused prosecutors of carrying out a vendetta on orders from Chavez.

To read this article on CBS Money Watch, please click here.

 
May
16
2012
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As Chavez Resurfaces, Venezuela’s Debt Plunges

The Wall Street Journal
By Kejal Vyas
May 16, 2012

id33924 300x190 As Chavez Resurfaces, Venezuelas Debt Plunges

Courtesy of: El Carabobeño

Signs that President Hugo Chavez has no intentions of backing down from Venezuela’s upcoming presidential elections, despite his battle with cancer, are putting a damper on the country’s red-hot sovereign debt.

Investors and analysts have turned bearish on bonds issued by the Venezuelan government and Petroleos de Venezuela, the state oil company, in recent days, suggesting the market may have overshot the chances of Chavez’s leftist regime being ousted in the October vote.

After a stellar run over the last several months, many Venezuelan bonds have cratered from highs hit at the beginning of May, as hopes wane for Chavez, 57, exiting the stage and opening a path for more orthodox economic policies. “President Chavez’s commanding lead in the polls and the high level of electoral support for his (United Socialist Party of Venezuela) should increasingly constrain the possibility of a shift toward more market-friendly policies in the near future,” Bank of America Merrill Lynch said in a note to clients Tuesday.

Venezuela’s benchmark 2027 sovereign bond has fallen to a bid price of 77.5 with a yield of 12.6% from its high price of 90.5 hit near the start of the month. Similarly, the 2022 bonds of PdVSA, as the state oil company is known, have dropped to a bid price of 92.5 and a yield of 14% from 103.75.

New supply won’t do much to support prices, either. On Friday, PdVSA said it will sell $3 billion in 2035 bonds through a private placement to the central bank and other state banks, which are expected to funnel them into the secondary market. J.P. Morgan said it expects another $5 billion to $6 billion in combined issuance from the government and PdVSA this year.

Despite the recent losses, Venezuelan bonds still rank as one of the top performers among emerging-market debt this year, returning 13% in 2012 on J.P. Morgan’s Emerging Markets Bond Index Global.

Russ Dallen, managing partner at Caracas Capital Markets, said much of the sharp movements in recent days “have been driven by fast money,” such as hedge funds. “They’re not the investors that believe in the long-term story.”

Analysts now warn the bonds could retrench back to levels seen at the start of the year. That comes as global money managers look to mitigate risk due to nagging concerns over the tepid rebound in the U.S. economy, Europe’s debt crisis and a slowdown in China.

Moreover, within Venezuela, a flurry of local polls continue to show Chavez with a commanding lead over his opponent, Miranda state Gov. Henrique Capriles, 39, who many pollsters have expected to pose the greatest challenge to the firebrand socialist in years.

To be sure, Venezuela’s political sphere is highly polarized and many observers have questioned the legitimacy of polls, especially those published by government-backed groups that have shown a wide discrepancy in support between the rivals.

One survey group, Hinterlaces, said Capriles had 34% of voter support in April, compared with 53% for Chavez. “The usefulness of polls is somewhat limited…but what we do know is that Chavez is in the lead,” said Dallen. “He is an enormously popular guy, he speaks to the people…he’s one of them.”

Indeed, Chavez has aimed to solidify support among his key constituency–the country’s poor–with enormous increases in spending on social programs this year. And he has been able to quell the speculation that his health is deteriorating.

But it hasn’t been easy, given that he hasn’t identified the type of cancer and has received most of his cancer treatment under wraps in Cuba.

Chavez has made just a couple of live appearances in the last month, with his most recent coming Friday night. When appearing publicly, he looks to show that he’s on the mend. On Friday, he gave a nearly 20-minute speech and walked unassisted alongside aides.

“I should inform that in these last days we have concluded in a successful manner all of the cycles of radiation therapy,” Chavez said at the time. “And now we come with a great optimism.”

His reappearance and the recent polling results “reinforce the conventional wisdom that if Chavez can run, he will win the October 7 elections,” says J.P. Morgan in a Wednesday report. “But we still think much can change in the next five months, especially considering the uncertainty over his health,” the investment house added.

-By Kejal Vyas, Dow Jones Newswires; 58-414-249-6821; [email protected]

To read the original article from The Wall Street Journal, please click here.