Wed, Oct 1, 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

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. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar

  3. Europe - Ed Miliband's war on hedge funds could damage City of London[more]

    From Telegraph.co.uk: Ed Miliband’s plans to wage war on hedge funds could be potentially more damaging to the City of London than even the financial transaction tax (FTT), senior banking sources warned on Tuesday night. The Leader of the Opposition took aim at a number of industries as part of his

  4. News Briefs - SEC probes Pimco ETF over pricing irregularities, BEPs: Action plan released and UK first to adopt country-by-country reporting[more]

    SEC probes Pimco ETF over pricing irregularities The Securities and Exchange Commission is investigating Pimco’s pricing of exchange traded funds, the latest cloud to hang over the world’s largest bond manager, which has been dogged by poor performance and management infighting. Pimco on

  5. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is