Fedecamaras Fernandez arrest increases foreign investor concerns

www.vheadline.com Posted: Friday, February 21, 2003 By: Robert Rudnicki

US investors are believed to be growing increasingly concerned about the situation in Venezuela following the arrest of Venezuelan Federation of Chamber of Commerce & Industry (Fedecamaras) president Carlos Fernandez. Reuters quoted MFS Investment portfolio manager Mark Dow as saying "Chavez has won and it appears he is consolidating his hold on power."

Dow went on to question recently imposed foreign exchange controls and the current weak fiscal position, speculating that the government may be setting the stage to print money to cover public sector borrowing requirements, a move which could drastically effect inflation.  He says "it is almost impossible that Chavez' economic policies will work, so the non-oil economy will continue to deteriorate."