Venezuelan banks break deadlock - Shoppers have been faced with empty shelves

news.bbc.co.uk Wednesday, 29 January, 2003, 21:06 GMT

Venezuelan banks are to end their nationwide strike on 3 February, following reports that president Hugo Chavez would punish those that didn't resume normal hours.

The banking sector said it would return to working a full seven hours a day instead of the three hours per day they have been working since the strikes began.

This is the result of demands from the public and deposit holders

Nelson Mezerhane, Federal banking group president

The eight-week old protests, which began on 2 December, were aimed at forcing Mr Chavez from office.

But the president had threatened to seize schools, banks and factories to break the strike.

Dwindling enthusiasm

The National Banking Council and the Venezuelan Banking Association said they have decided by a two-thirds vote to restart normal operating hours from Monday.

"This is the result of demands from the public and deposit holders," said Nelson Mezerhane, president of the Federal banking group.

"Banks don't belong to their presidents but to their deposit holders."

Support for the near-two month strikes had been starting to wane in the non-oil sectors, as businesses were forced to reopen to avoid bankruptcy.

The strikes have forced Venezuelans to queue for cash, food and gas, and sparked angry protests in which at least seven people have been killed.

Management at shopping centres, restaurants and schools were also reportedly planning to return to work on Monday.

Oil strike continues?

But oil workers at the heart of the opposition campaign vowed to continue.

More than 5,000 Venezuelan oil workers have been fired since they began their strike.

And oil production has almost ceased in Venezuela - the world's fifth largest oil exporting country - helping to send crude oil prices two-year highs.

The strikes have so far cost Venezuela more than $4bn (£2.4bn) and some analysts are predicting the economy will shrink by 25% in 2003, after contracting by 8% in 2002.

Opposition leaders are trying to change the constitution to shorten Mr Chavez's term in office from seven years to four.