EveryJoe » hugo chavez

Hugo Chavez Buys Banco de Venezuela

Stephen Kersey — Sat, 04 Jul 2009 03:58:30 +0000

On Friday, Hugo Chavez and the government of Venezuela officially purchased Banco de Venezuela. Although the agreement to buy the bank was made in May, the first payment was completed this week.

Banco de Venezuela had owners, Grupo Santander, in the country of Spain. The selling price was reportedly more than one billion. Venezuela’s government will make three separate payments to complete the transaction by the end of the year.

With more than 3 million customers, Banco de Venezuela reportedly handles about 10% of the deposits in the country. It’s now estimated that the Venezuelan government is in charge of more than 20% of the country’s deposits.

Prior to the deal, the government had about 9,000 bank employees. The purchase of Banco de Venezuela pushes that number up to approximately 15,000.

This move continues a trend in Venezuela of Hugo Chavez and the rest of the government nationalizing major segments of the economy.

Banco de Venezuela (Image: Flickr)

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Hugo Chavez Buys Banco de Venezuela

Will Venezuela seize Pfizer for Revenge?

Mark Ellis — Sat, 23 May 2009 03:29:06 +0000

Pfizer recently shut down one of its Venezuela plants, a move that has drawn much criticism from Venezuelan officials because of the fact that the U.S. drug company provides much needed medicine for large parts of the South American country.

The move would comprise just one of a growing trend of nationalized business in the country thanks to socialist leader Hugo Chavez. Venezuela’s rice business, as well as several oil and iron companies, has been taken over by the government already and Hugo Chavez has been advised by the Venezuelan trade minister to do the same with one of Pfizer’s plants.

Although such an action would be temporary, it would have profound symbolic ramifications. Hugo Chavez’s socialist regime has already strongly opposed private business, and taking control of Pfizer would constitute yet another attack on the capitalist model.

©Roberto Gimmi - Flickr CC

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Will Venezuela seize Pfizer for Revenge?

Hugo Chavez Eyes Spending Cuts

Stephen Kersey — Mon, 23 Mar 2009 03:12:04 +0000

Hugo Chavez, the controversial President of Venezuela, is one of the many world leaders searching for ways to survive during these difficult economic times. In Venezuela, the economy has been negatively affected by slumping oil prices.

Hugo Chavez (Image: Flickr)

Chavez recently outlined a plan that will cut spending deemed unnecessary by federal employees. Examples of spending that will be cut includes money paid toward everything from new automobiles to cell phones to lavish parties. Chavez also plans to reduce the yearly income of many of those employed by the Venezuelan government.

Another way Chavez plans to boast Venezuela’s economy is raising taxes. According to reports, the South American president is ready to increase sales tax from 9% to 12%.

Since oil hit its peak price in the middle months of 2008, prices has dropped by more than 60%. Considering that more than 90% of Venezuela’s exports are oil-related, it’s no surprise that Chavez is actively planning how to keep his economy afloat.

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Hugo Chavez Eyes Spending Cuts