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Hugo Chavez has destroyed Venezuelan market

5 May 2007
Written by: webmaster Posted under Politics

The basic index of the Venezuelan share market has fallen to 2,74 % after the president of country Hugo Chavez has declared the intention to nationalize commercial banks. Thus the index of the financial companies has lowered on 3,12 %. BBVA Banco Provincial (-4,5 %), belonging Spanish Banco Bilbao Vizcaya Argentaria SA, and also Mercantil Servicios Financieros CA (-3,6 %) and Venezolano de Credito (-1,3 %) are the leaders of falling.
Experts predict that if Hugo Chavez realizes the threat into life, banks will start to incur losses as they may come into the hands of the people who are not specializing in banking.
Hugo Chavez has addressed to the banks on the eve. Thus the Venezuelan leader has specified, that nationalization will not occur, if these companies will start working in the state interests and Ternium-Sidor will deliver home market with cheap production.
Earlier Venezuela has informed about its intention to refuse from the membership in the International Monetary Fund (IMF) and the World Bank. Hugo Chavez has declared that Venezuela will not have to address to Washington, to the World Bank, to the IMF or to someone else any more.
On May, 2nd, 2007 Chaves has declared, that the state has taken under the control last oil deposits of private companies.  According to Chavez’s policy the foreign companies are to sell share at a rate of not less than 60 % in projects on an oil recovery national oil company Petroleos de Venezuela SA (PDVSA) till May, 1st, 2007. ConocoPhillips Oil Company has disagreed with the conditions which have been put forward by the Venezuelan government. In this connection the authorities have already threatened to expropriate all company’s actives on the territory of Venezuela.
 




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