Economy and Business Info
Posts Tagged ‘Central Bank’
Why President Cristina Fernandez launched the credit for investment projects in economic sectors
finance investment projects in any economic sector. The so-called “Production Financing Program of South America will be anchored by the Central Bank (BCRA), but reservations will not be used for this purpose. The announcement had been advance Profile Journal on Sunday.
The loans will be available with an interest rate of 9.9% annual fixed weights and have a period of up to five years. Projects that a unit comprised of the Ministries of Industry and Economy will evaluate applications. For its part, the Central Bank will give financial institutions public and private resources to lend against the security of tenure of such bonds.
Industry reported this medium, have been relieved about 100 investment projects. The main areas involved are steel, petrochemicals, leather, textiles, footwear, medicines, wood and furniture, auto parts, software, toys, and dairy foods.
Indeed, the purpose of the loans is to achieve anti-inflation, given that current demand for goods and services grows above generate supply and price increases, among other factors.
The Minister of Industry, Debora Giorgio, explained, “This growth generates greater investment needs, which are aggregate demand this year and a greater supply of goods and services for the future. Furthermore, the increased investment will result in import substitution, value-added exports and supply the booming domestic market. “
Why Venezuela’s Central Bank has decreased in 2010
The Central Bank of Venezuela registered a decline of 5.8% of GDP during the first quarter of 2010, the Venezuelan economy is shrinking now has four quarters in decline.
The funding sources of economic activity fell in its various lines, such as private consumption fell by 5.9%, investment fell 27.9%, government spending contracted by 0.2%.
However, a positive result exports increased 70.9%, which is explained by the rise of the Venezuelan oil basket.
Areas to invigorate the economy by their potential employer, showed sharp declines. Manufacturing activity fell 9.9%, trade fell 11.6%, construction fell by 7.8% and oil dropped 5%.
Growth continued in the area of communications with a rise of 9.7% and 2.8% community service.
This gloomy economic outlook occurs when prices of a barrel of Venezuelan oil to average U.S. $ 70.5 showing a recovery of 85% compared to the first quarter of 2009.