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Oct
26
2012
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In Case You Missed It… Articles Roundup Week of 10/26/12

gold In Case You Missed It… Articles Roundup Week of 10/26/12

Courtesy of: El Universal

Last Sunday, former Venezuelan Vice President Elias Jaua visited Fidel Castro in Cuba, stating he “is doing very well” amidst speculation over his health. Despite Venezuela’s withdrawal from the Inter-American Court on Human Rights, it continues to hear human rights cases against the government; now that the Venezuelan presidential race is over, the pace of housing construction has slowed remarkably in Caracas. Meanwhile, Venezuela’s crime rate soars as Caracas has become one of the hemisphere’s most violent cities amid declining poverty; NGOs call for a debate on the government’s proposed cable TV regulation, which would restrict content and limit government criticism on cable networks in Venezuela. Recently, the World Bank’s “Doing Business” report ranked Venezuela 180 out of 185 countries among those most difficult for investment; the IMF confirms gold sales made by Venezuela’s central bank in August, leaving bullion reserves at 362.05 tons; the opposition criticized electoral authorities for allowing pro-Chávez candidates to switch voting districts to run in different states in the December gubernatorial elections. Lastly, a resolution by the Venezuelan Ministry of Education establishes education councils charged with bringing up “a new citizenship” in Venezuela’s youth. The councils have been criticized as being used by representatives of Chávez’s party to deepen his socialist revolution within the educational system.

Castro ‘doing very well,’ Venezuelan politician says, CNN

Havana (CNN) — Fidel Castro “is doing very well,” Venezuela’s former vice president said Sunday, showing reporters a snapshot of the former Cuban leader that he said was taken the day before. Speculation has surged over Castro’s health in recent weeks.

Despite Venezuela’s withdrawal, IACHR still hears cases against it, El Universal

If the government was under the impression that by initiating its withdrawal from the Inter-American Court on Human Rights that organization would cease their probes into cases involving Venezuela, it was wrong, as evidenced by the fifteenth ruling against the nation.

Sluggishness of housing works, El Universal

The frenzied pace of most government works is now in the past after the presidential election, as verified in a tour by El Universal. The construction pace plunged in a complex of more than one thousand dwellings on the Los Leones bridge, La Paz, west Caracas.

Venezuela crime soars amid declining poverty, Al Jazeera

Caracas, Venezuela – With some 19,336 murders last year, Caracas has become one of the western hemisphere’s most violent cities and one particular criminology expert had a front row seat the other day, experiencing the overwhelming insecurity first-hand when robbers stuck a gun in his face as he rode home on the bus.

NGO calls for debate on cable TV regulation in Venezuela, El Universal

Representatives from several organizations belonging to the NGO Monitor Legislativo (Legislative Monitor) discussed the upcoming Venezuelan legislative agenda.

Spending Jumps 33% in Venezuela’s 2013 Budget Proposal, Fox Business

Mr. Giordani presented to Venezuela’s national parliament the annual budget proposal, which set expenditures at VEF396.4 billion bolivars, or just over $92 billion at the official exchange rate.

Venezuela among the countries with more obstacles to investments, El Universal

Venezuela is among the countries featuring more obstacles for opening a business, according to a study prepared by the World Bank entitled “Doing Business 2013.”

IMF confirms gold sales made by Venezuela’s central bank in August, El Universal

Venezuela sold 3.73 tons of gold bars in August, thus leaving its bullion reserves at 362.05 tons, according to figures disclosed by the International Monetary Fund (IMF), Reuters reported on Thursday.

Venezuela opposition criticizes movement of pro-Chavez candidates between voting districts, Fox News

CARACAS, Venezuela – Venezuelan opposition leaders complained Thursday that electoral authorities allowed some candidates allied with President Hugo Chavez to switch voting districts and run in different states in December’s gubernatorial elections.

Minister: education councils aim to bring up “the new citizen” in Venezuela, El Universal

Resolution 058 of the Venezuelan Ministry of Education provides for the establishment of education councils in the basic education subsystem. Such councils intend to bring up “a new citizenship,” which involves providing “integral education for the new man and woman, for the new republican,” according to Venezuelan Minister of Education Maryann Hanson.

 
Apr
4
2012
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ICYMI: Venezuela Credit Rating May Be Cut by Fitch on Oil Reliance

Bloomberg
April 4, 2012
By Daniel Cancel

Venezuela’s credit rating may be cut by Fitch Ratings, which cited higher spending, increased dependence on oil and the use of off-budget funds in reducing the outlook for the country to negative from stable.

A jump in government outlays may push the central government budget deficit to 6.8 percent of gross domestic product this year and make the South American country more vulnerable to a slump in commodities, Fitch director Erich Arispe said today in a statement. A drop in crude or gold prices could negatively affect the rating, he wrote.

Venezuelan President Hugo Chavez, who is receiving radiation therapy to treat cancer in Cuba and plans to seek re- election in October, has diverted at least $80 billion to off- budget development fund Fonden since it was created in 2005 and accelerated borrowing in U.S. dollars amid record crude prices. The 57-year-old also decreed a change to the public finance law on March 29 that allows him to issue debt beyond the budgeted amount without seeking congressional approval.

“A markedly expansionary fiscal policy and the transfer of the country’s oil-windfall to opaque off-budget funds have weakened Venezuela‘s external and fiscal credit metrics as well as increased its dependence on high oil prices,” Arispe said in the statement.

The yield on Venezuela’s 9.25 percent benchmark bonds due in 2027 rose 15 basis points, or 0.15 percentage points, to 10.98 percent today at 11:10 a.m. in Caracas, according to data compiled by Bloomberg. The bond’s price fell 0.99 cent to 87.25 cents on the dollar.

Rating Affirmed

Fitch affirmed it’s B+ credit rating for Venezuela, which is four levels below investment grade and in line with the ratings of Bolivia, Ghana, Kenya, Vietnam and Zambia.

Fitch also changed its outlook for Venezuelan state oil company Petroleos de Venezuela SA and government-run utility company Electricidad de Caracas to negative, according to a separate statement.

PDVSA, as the Caracas-based oil company is known, has about $19.5 billion of dollar bonds outstanding while the state utility has about $663 million of bonds due in 2014 and 2018, Fitch said in the statement.

Venezuela depends on oil for 95 percent of export revenue and about 66.7 percent of its international reserves were in gold at the end of 2011, Fitch said.

Borrowing Costs

While Venezuela’s debt-to-GDP ratio of 25.2 percent is lower than peers, interest payments are rising as the country sells more bonds at high borrowing costs, Fitch said. Venezuela sold $7.2 billion of bonds in 2011.

The extra yield that investors demand to hold Venezuelan debt instead of U.S. Treasuries widened 11 basis points to 943, according to JPMorgan Chase & Co.’s EMBI Global index.

Recent polls show Chavez maintains a lead on opposition candidate Henrique Capriles Radonski six months before the Oct. 7 election. Chavez has ruled Venezuela since 1999.

“The risk for political and social instability remains present due to the high concentration of power in the hands of the president, weak institutional framework and the high degree of political polarization in Venezuela,” Fitch wrote. “The likelihood of a close presidential election and concerns about President Chavez’s health add further uncertainty to the political environment.”

To contact the reporter on this story: Daniel Cancel in Caracas at [email protected]

To contact the editor responsible for this story: David Papadopoulos at [email protected]

To view this article on Bloomberg, please click here.

 
Dec
2
2011
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In Case You Missed It… Articles Roundup Week of 12/2/11

In this week’s roundup…The Latin American summit being hosted in Caracas this week shines a spotlight on President Chávez questionable health; A prosecutor for the International Criminal Court will consider alleged “crimes against humanity” committed by Chávez and Mexican president Felipe Calderón; Venezuelan officials arrest one of the world’s most-wanted suspected drug kingpins. Meanwhile, Chavez’s newest price controls send consumers “panicking” to stock up on basics items like coffee and toilet paper, and his tight-fisted housing policies have driven a growing number of Venezuelans to invest, ironically, not in Venezuela’s but in Miami’s real estate market.

FACTBOX-Venezuela’s nationalizations under Chavez, Reuters

Venezuelan President Hugo Chavez has nationalized major swaths of the South American OPEC nation’s economy as part of a socialist agenda he has promulgated during nearly 13 years in power. Venezuela was battling about 20 arbitration cases as of late 2011 through the World Bank’s International Center for Settlement of Investment Disputes. Below are examples of companies whose assets have been confiscated.

Latin American summit re-run to test Chavez health, Reuters

Venezuelan President Hugo Chavez hosts a regional summit this week that puts his recovery from cancer at center stage as he begins his toughest election campaign yet. The first meeting of the 33-member Community of Latin American and Caribbean States (CELAC) on December 2-3 was originally meant to be held six months ago to coincide with the 200th anniversary of Venezuela’s independence.

ICC prosecutor to consider complaints against President Chávez, El Universal

Argentine lawyer and chief prosecutor of the International Criminal Court (ICC) Luis Moreno Ocampo said Tuesday that he would consider the complaints filed with the ICC on alleged crimes against humanity allegedly committed by Venezuelan president Hugo Chávez and Mexican president Felipe Calderón.

Venezuela arrests Colombian drug kingpin, The Telegraph

One of the world’s most wanted suspected drug kingpins, who allegedly ran a 1,500-strong gang trafficking tons of cocaine from Colombia to the United States, has been arrested in Venezuela. Maximiliano Bonilla-Orozco, 39, is expected to be extradited to the US, whose government had offered a reward of up to $5m for information leading to his capture.

Venezuela Repatriates First Gold Shipment From Europe, The Wall Street Journal

Venezuelan officials Friday welcomed the first air shipment of overseas gold holdings as part of a controversial move to repatriate the country’s foreign reserves held in North America and Europe. Crates holding gold bullion were shown on state television being offloaded at the capital city’s Maiquetia airport and onto armored vehicles.

Chavez Price Caps Spark Panic Buying of Coffee, Toilet Paper, Bloomberg

Venezuelan President Hugo Chavez’s move to expand price controls this week sparked panic purchases by consumers, leading to shortages of everything from coffee to toilet paper. People are buying more than they need to stock their homes and resell the products at a profit in the black market, Food Minister Carlos Osorio said yesterday on state television.

Venezuelans fuel Miami property boom, The Financial Times

Hugo Chavez may like to indulge in a bit of fist-shaking at the gringos every now and again, but often he can inadvertently be quite useful to what he likes to call the “evil empire”. Most recently, he has helped to power a recovery in Miami’s depressed real estate market by driving a growing number of rich Venezuelans to buy up property in that hotbed of expatriate latinos, thanks to an absence of investment options at home.