« Eurocommission has approved Norsk Hydro’s and Statoil’s merge - Hugo Chavez has destroyed Venezuelan market »

Hugo Chavez wants to nationalize all private banks

4 May 2007
Written by: webmaster Posted under Politics

The president of Venezuela Hugo Chavez has threatened with nationalization of all private banks, working in Venezuela and the largest steelmaking company of country - Ternium-Sidor.
However, the Venezuelan leader has specified, that the nationalization will not occur, if these companies start to work in “the state interests”. For these purpose private banks should order finance the industry of the country in the priority and under low rates, and Ternium-Sidor - to supply domestic market with the production under the lower prices.
Otherwise the nationalized banks “will work for the blessing of development of the country, instead of to be engaged in financial gamble and an earning of super profits”.
Meanwhile it is not clear, whether the given innovation concerns foreign banks, which have branches in Venezuela.
On May, 2nd, 2007, Hugo Chaves has declared, that the state has taken under the control last oil deposits, which have been developed by the private companies. In January 2007, the President of Venezuela has signed the decree about nationalization of Orinoco oil deposits. According to the document, the foreign companies should sell a share at a rate of not less than 60 % in projects on an oil recovery to the  national oil company Petroleos de Venezuela SA (PDVSA) till May, 1st, 2007. BP Plc, Exxon Mobil Corp., Chevron Corp., Total SA and Statoil ASA have agreed to these requirements. Only ConocoPhillips has disagreed with the conditions which have been put forward by the Venezuelan government. In this connection the authorities have already promised to expropriate actives of the company in the country.
 




Related posts:

Leave a reply

You must be logged in to post a comment.