Venezuela Banks Agree To Keep Regular Hours After 8 Wks

sg.biz.yahoo.com Wednesday January 29, 10:37 PM

CARACAS -(Dow Jones)- Venezuelan bankers decided Wednesday they'll return to opening the normal seven hours a day as of Monday, instead of the three hours a day they'd been keeping in support of a 59-day-old general strike, central bank president Diego Castellanos said.

The move follows media reports the government threatened to suspend directors of banks that ignored a decree requiring them to abandon the restricted hours.

Banking officials couldn't be reached for further comment.

ADVERTISEMENTLocal banks include Citi Group Inc.'s (C) Citibank and subsidiaries of Spanish conglomerates Banco Santander Central Hispano (STD) and Banco Bilbao Vizcaya Argentaria SA (BBV).

The bankers' decision follows those of many other businesses that have reopened after being closed for about eight weeks.

The strike that began Dec. 2 called for President Hugo Chavez to agree to early elections.

Chavez's term runs through early 2007.

Opposition leaders have said the strike isn't officially over but they appear to be relying more on international efforts to bring about early elections.

Chavez's critics blame his left-leaning policies for country's deepening economic crisis with a likely 8% contraction in 2002 amid 17% unemployment and 31% annualized inflation sparked by a 46% devaluation of the bolivar ($1=VEB1853).

Chavez has said the problems are due to an "economic coup" led by his opponents.

-By Jehan Senaratna, Dow Jones Newswires; 58212 564 1339; jehan.senaratna@dowjones.com