Economy and Business Info

Posts Tagged ‘Central Bank of Venezuela’

The chair of the Finance Committee of the National Assembly (AN), Deputy Ricardo Sanguine, attributed the decline in economic activity in Venezuela to the national electricity crisis.

Indicators of Central Bank of Venezuela (BCV) showed the close of the first quarter of this year a significant fall in gross domestic product (GDP) of 5.8 points.

“We are in an energy crisis, and all productive activity, industrial, service, agriculture, electricity demand,” said the deputy Sanguine interviewed by José Vicente Hoy.

This is the fourth quarter continued to decline in the Venezuelan economy. ‘This had been observed’, Sanguine said.

‘It warned that we were down this quarter but did not imagine that 5.8 points, which is a substantial rate, which are visible from the effects of the oil sabotage and coup detach. “

The congressman recalled that despite the economic downturn in the episodes mentioned that took place in 2002, ‘advanced greatly and the following year we had significant growth, not seen in the history of Venezuela’s economy. “

‘on this occasion can not be different, “said Rep. Purist.

“We are encouraging the development of productive activities of social property, social production companies in all areas: agriculture, industry, service, distribution and marketing of products,” he said.

Sanguine said that the state control of strategic companies that were in private hands would boost the economy.

Venezuela faced in late 2009 and early 2010 an electricity crisis due to a severe drought that affected the course of the rivers that feed the main dams that generate electricity to the country.

This situation prompted the government to build national systems of electricity production alternatives to hydropower. The Geri dam supplies the country 70% of its energy.

Leaders of the Central Bank of Venezuela and the Ministry of Planning and Finance are concerned about the difficulties encountered by the installation of the band system to carry out exchange operations, said sources close to the central bank.

The total amount of the issue, the main aim was to lower the dollar side, was 50 million dollars. However, to be prohibited transactions in the swap market, the Central Bank and the Ministry of Planning and Finance study a way to fulfill this commitment and to prevent the nation lose confidence for future emissions.

The Government did not take into account that freezing the stock market could have serious implications even for its debt profile because, for example, if you do not pay the instrument issued by the Central Bank would create a precedent very difficult to overcome, said a treasurer consulted.
There is still no certainty about the increase in the quota of foreign exchange for travelers.
“It has to do with the trust that exists when you buy a part of the Republic, if not canceled in time will be uphill achieve in the future that investors are interested in buying bonds,” the treasurer. .

Therefore, a statement caught the attention of the director of the BCV, Armando Leon, which confirmed that the market for buying and selling foreign currency bonds to restart in the coming days.

“Next week should be completed and all operational and functional part of the legal foundation that will carry the system, so we should be operating,” he added.

The government suspended on May 18 called “parallel market exchange or market” which until then was in charge of brokerage firms that negotiated the purchase and sale of bonds or securities, by the allegations of “criminal offenses” in “fixation speculative” price for the transfer of the papers, said Leon Glob vision.

The president of the National Securities Commission, Tomas Sanchez, said: “We have strong presumptions that these institutions are involved in crimes exchange with the simulation of operations,” he said.

Attempts were made to verify with the authorities of the Central Bank if you really consider increasing the quota of foreign exchange for travelers, as the holder of Cadaver said Manuel Barrios, earlier this week, but none of the directors wanted to refer to the information.

The head of the Central Bank of Venezuela Armando Leon noted in the last quarter there were minor delays on a set of areas of the economy and that was the cause of the fall of 5.8% of GDP. He said already bottomed out and now must improve the performance of the economy.

Leon reported that between Friday and Saturday must be finished testing the new system for the currency market on Monday and 90% of the system is ready.

The Back’s management denied the data of Conindustria whereby 40% of imports swap was made with U.S. dollars. He said there is no way that that was true and if it appraised and its costs is another matter.

In his view, between 15% and 20% of imports may be held with the exchange.

Armando Leon said that in Venezuela, there is economic and business activity engaged in operations and investments and the proof is that they have paid almost $ 100,000,000 in foreign newspapers