Wed, Dec 2, 2015
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

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

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. David Einhorn's hedge fund plunged 5.2% in November, set for 2015 loss[more]

    From David Einhorn’s main hedge fund at Greenlight Capital fell 5.2 percent in November and is poised for only its second losing year in almost two decades. The losses bring the fund’s yearly drop to almost 21 percent, according to an e-mail sent to clients that was obtained by Bloomb

  2. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  3. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  4. Commodities - Stung by oil, distressed-debt traders see worst losses since '08[more]

    From It’s mid-November, but for investors who trade in the debt of distressed companies, the year’s already done -- and they lost. Hedge funds that specialize in the debt are grappling with their worst declines in seven years. Funds managed by Knighthead Capital Management, Candlewood

  5. Regulatory - Major changes in partnership audit procedures contained in 2015 Budget Act[more]

    Contained in the Bipartisan Budget Act of 2015, signed by President Obama on November 2, is a rather complex provision that materially changes how partnerships are audited. Generally effective for tax years beginning after December 31, 2017, the so-called “TEFRA” and “Electing Large Partnership” rul