www.vheadline.com Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

Opposition negotiator in the Organization of American States (OAS) facilitated peace negotiations Americo Martin has insisted that the opposition will continue to push for an electoral solution to Venezuela's ongoing political crisis, either a revocatory referendum or a constitutional amendment that would cut President Hugo Chavez Frias' term in office and allow early general elections. 

"The government knows our stance and we know the government's point of view. So we could reach an agreement. I am not optimistic or pessimistic, I am just working on the documents I have in hand. I think there is huge pressure in favor of an electoral solution."

Negotiations have made little progress over recent weeks following the signing of a non-violence agreement, a talks were suspended due to Organization of American States (OAS) secretary general Cesar Gaviria's unavailability and then the government's requests to postpone sessions.

www.vheadline.com Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

According to Currency Administration Commission (Cadivi) president Edgar Hernandez, a list of goods for which will once again be able to be imported on the Commission's website tomorrow. This follows a six week ban on dollar sales, which has virtually halted all import activity.

President Hugo Chavez Frias has already said that dollars will not be made available for luxury goods such as 10-year-old malt whiskies, insisting that funds will only be made available for necessities.

Hernandez clarified this point saying "those with products not on the list need not apply."

In the initial stages $600 million will be made available each month, around half of normal demand, with fast food chains likely to suffer as Hernandez claims they will not be on the priority list and will have to wait before their dollar applications can be processed.

www.vheadline.com Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

Talks between government and opposition negotiators are scheduled to continue this week despite the unavailability of Organization of American States (OAS) secretary general Cesar Gaviria, however the earliest possible session is likely to be this Wednesday.

Gaviria has prior engagements in Bolivia this week and is not expected to return to Venezuela until next week.

Coordinadora Democratica negotiators are hoping that the discussions will continue to concentrate on an electoral solution to the current crisis, as laid out by former US President Jimmy Carter.

Talks have been very stop and start over recent weeks, with major disagreement over the arrest of Venezuelan Federation of Chambers of Commerce & Industry (Fedecamaras) president Carlos Fernandez and the detention orders issued for several other strike leaders.

www.vheadline.com Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

Venezuela's inflation rate rose to 7.1% in February, a seven year high caused by increased demand a reduced supply brought about by price controls enforced by the government six weeks ago as a result of severe pressure on the nation's international reserves.

Last month's figure was the highest since June 1996, when a similar figure was reported.

February's 7.1% saw the 12 month trailing inflation rate rise to near 39%, the highest level since 1997.

The rise in inflation rates had been forecast by many analysts, who cautioned that imposing price controls would significantly reduce supply of goods and therefore force prices higher.

Central Bank of Venezuela (BCV) director Armando Leon said "price controls have had less impact than the authorities expected ... they have caused a drop in the supply of goods."

Posted: Tuesday, March 04, 2003 By: Robert Rudnicki

Petroleos de Venezuela's (PDVSA) efforts to recover production of gasoline have been hampered by the company's inability to restart a catalytic cracking unit at the Paraguana refinery. An attempt to restart the unit was made over the weekend, but this failed as problems persisted in being able to establish a stable gas supply and to overcome the effects of sabotage.

However, the unit is expected to be up and running by the end of next week, and once this happens production should stand at 140,000 barrels of gasoline per day, in addition to the 60,000 being produced at the Cardon plant this would lift levels to 200,000 barrels per day, almost enough to cope with domestic demand.

The Venezuelan government has been forced to import significant quantities of gasoline from overseas to meet domestic demand, and although long queues were evident across the country, it now seems that supplies have stabilized and shortages have all but disappeared.