Fri, Apr 18, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The Big Picture: Economic crisis looms in Venezuela

Friday, January 11, 2013

amb
Nicolas Maduro
An Opalesque column for global macro investors.

Benedicte Gravrand, Opalesque Geneva:

President Hugo Chavez’s fourth consecutive term begun on 10th January, although the official inauguration was postponed as Chavez is once more being treated for cancer in a hospital in Havana, and, according to the latest reports, seriously ill. In October 2012, he won 55% of the vote while his main opponent, Henrique Capriles, won 44%. Nicolas Maduro will continue as both the vice president and the acting president.

According to several specialist reports, the current power vacuum and shaky economic situation may lead to an economic crisis especially if deficits, cash reserve and currency issues are not tackled as soon as possible. But not much can be done before a proper transition of power.

King Chavez

Venezuela’s constitution, which Mr Chávez pushed through in 1999, says that if the president-elect’s incapacity is temporary, the vice-president should step in for up to 180 days, The Economist reports, and goes on to say now is really not a good time for a power vacuum.

"The country faces an economic crisis," the article says. "Having ramped up spending to win the election, the government ran a budget deficit of 8.5% of GDP last year, according to independent economists. Pluggi......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an