Monthly Archives: January 2011

Jan
28
2011
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In Case You Missed It…Articles Roundup Week of 1/24/11

Chávez has been making headlines around the world all week. During a televised phone call with Spanish-owned BBVA (Banco Bilbao Vizcaya Argentaria SA) on Wednesday, “El Presidente” threatened to expropriate the bank, citing bogus claims of “mortgage” deceit. Unfortunately for the bank (and the people of Venezuela), Chavez has a long history of expropriations that are detrimental to the economy. Recently, he has also succeeded in nationalizing a private bank (Banco de Venezuela in May 2009). We will be following the story closely here at WhatsNextVZ.

In other news, Human Rights Watch reported the country’s human rights situation was “precarious” due to “weakening of democratic checks and balances.” Numerous human rights violations coupled with severe political pressure on independent media from the Chavez regime (as reported by U.S. diplomatic cables) and a growing opposition in the National Assembly paint a picture of a nation on the brink of revolution. ..and not the Bolivarian kind.

In case you missed it, here is the latest on Venezuela:

BBVA Venezuela Agrees to Cooperate With Government, Avoid Nationalization Bloomberg

BBVA Banco Provincial, the Venezuelan unit of Spain’s Banco Bilbao Vizcaya Argentaria SA, said it will work with the government and meet with families affected by an alleged housing fraud after President Hugo Chavez threatened to nationalize the bank if it did not cooperate.

Venezuela’s Chavez threatens to seize Spanish-owned bank Fox News Latino

President Hugo Chávez threatened to expropriate the Venezuelan subsidiary of Spanish banking giant BBVA during a tense telephone conversation Wednesday with Banco Provincial’s CEO that was broadcast live on radio and television.

Deputy rules out nationalization of banking sector in Venezuela El Universal

Héctor Navarro, the chair of the Standing Committee on Comptrollership, National Assembly, dismissed the possibility that the Venezuelan government nationalize private banks. His remarks came after President Hugo Chávez threatened to seize Banco Provincial, the Venezuelan affiliate of Spanish Banco Bilbao Vizcaya Argentaria (BBVA), if it fails to comply with ”Venezuelan laws.”

Venezuela Government Takes Over Casa Propia Bank Bloomberg

The Venezuelan government has nationalized Casa Propia Entidad de Ahorro y Prestamo bank due to “unfortunate practices” related to real estate construction, Juan Carlos Escotet, head of the Venezuelan Banking Association, relatated on Union Radio.

Chávez Supporters, Foes Stage Anniversary Rallies NPR

Allies and adversaries of President Hugo Chávez took to the streets of the capital by the thousands Sunday, staging rival demonstrations to commemorate the 53rd anniversary of Venezuela’s democracy.

Revolution–Venezuela on the brink The Examiner

Reports from Venezuela have placed human rights watchers on high alert as the country finds itself on the brink of revolution against the dictatorial Communism of Hugo Chavez.

HRW: Human rights situation in Venezuela is “precarious” El Universal

The “Venezuelan government’s domination” of the judiciary and its “weakening of democratic checks and balances” have contributed to a “precarious human rights situation” in Venezuela, said the NGO Human Right Watch (HRW) in its annual report released on Monday.

United States warns against Hugo Chavez’ economic pressures on media El Universal

The United States considered that the Venezuelan President Hugo Chávez is close to “his goal of domesticating or eliminating the remaining free and independent media in Venezuela,” thanks to political and economic pressures exerted on them, according to US diplomatic cables leaked by Wikileaks on Monday.

Hugo Chavez eggs on ‘squatters‘ The Examiner

Wearing red T-shirts from Hugo Chávez’ socialist party, and encouraged by the Venezuelan strongman himself, organized “squatters” seized 20 “unused” private properties in a suburb of Caracas; an apparent attempt to keep angry slum dwellers from turning against him as the middle class is already doing.

 
Jan
27
2011
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This Bank is NOT for Sale…

Imagine for a second, going about your day with your colleagues and suddenly getting a call from the president and, surprise! You’re on national TV. It’s not just that the president calling, but he is doing do so to threaten you with expropriating your company. Sounds like the twilight zone right? Well, this is exactly what happened to Pedro Rodriguez, Banco Provincial’s CEO in Venezuela.

Yesterday, President Hugo Chavez abruptly called Mr. Rodriguez during one of his legendary, marathonic live television “rallies.”  Mr. Chavez’ justification for such a call was to complain about the bank’s supposed involvement in a housing development project that some resident’s claim has gone awry.   Rather than presenting the problem and seeking a solution, the President played the bully card, threatening a forceful takeover of yet another Spanish company. As the conversation escalated, Pedro Rodriguéz informed President Chávez that the company was “not for sale.” Inflamed by his perceived arrogance, President Chavez reaffirmed his threat to expropriate the bank.

Banco Provincial is largely owned by Spanish bank, Bilbao Vizcaya. This is but the latest Spanish company to be a target of expropriation in Venezuela. Other Spanish companies such as Banco Santander and Agroisleña have all fallen under the expropriating hands of the Venezuelan government.

Also this week, in his most recent use of executive powers, President Hugo Chavez signed into law, The Law for Dignified Refuge which allows the government to take anybody’s home, business or property for temporary use as a refuge.

Ironically, the more Presdient Chavez attaks private property, the less the Venezuelan people seem to support it.  Public opinion is increasingly antagonistic to the President’s scorn for private property. Just today, another poll shows that 80 percent of Venezuelans disagree with the takeovers of private property, and reject the ongoing expropriations binge conducted by the Chávez administration.

But if yesterday was any indication, it is likely a matter of time before another company president or property owner gets a call from “El Comandante.”