Venezuela will issue a 15 year bond next week, which will be sold in local currency and be denominated in US$. The coupon will be around 7-8%. In the end, this becomes a way for those that have money to buy cheap dollars and for the Government to obtain the financing it needs. As in my comment about the banking system, simply perverse all around. But in the end Chavez gets his US$ 1 billion that he wants to throw at Venezuelan agriculture and see if anything grows (other than corruption and waste). Long live the revolution!
Archive for November 12th, 2003
A Minister in Lula’s Cabinet has told the Brazilian press that he does not agree with Venezuelans recalling Hugo Chavez and we should “wait” until 2006 when Chavez’ term expires. Now, I find it amazing that a Minister from the country that presides over the “Group of Friends” would say that he disagrees with a process that is part of the Venezuelan Constitution and is thus part of Venezuelan democracy whether he likes it or not. Furthermore, allowing the recall process was part of the agreement brokered by the Group of Friends. Moreover, Minister Dirceu is basically taking sides in a process that his country is supposed to be leading to resolve the issues between two very polarized sides. But if this is undiplomatic, unpolite and irrespectful of all Venezuelans, what I find most amazing is that nobody in Venezuela has said anything about it. Where is the opposition? Where is the Democratic Coordinator? I think this deserves a press release asking the Brazilian Government to respect the country’s Constitution and to reject and protest those statements by Minister Dirceu. The opposition needs to be more forceful, otherwise, we might get all of the signtures but never have the recall. If the world is allowed to believe that this recall is not democractic, then I fear that is what may happen…..