www.vheadline.com Posted: Monday, March 10, 2003 By: Patrick J. O'Donoghue

The Women’s Bank (Banmujer) has handed out 29 million bolivares of credits to 58 families in Nueva Esparta in an event which coincided with International Woman’s Day.

Proud Banmujer regional representative, Luisana Rodriguez highlighted the role of hardy island women in the different social programs sponsored by the non-status bank.

“Our bank has one of the highest repayment margins in Venezuela and our credits are effective … the associative economic units we support have developed productive groups and helped women become breadwinners for their families.”

news.ft.com By Andy Webb-Vidal in Caracas Published: March 10 2003 18:56 | Last Updated: March 10 2003 18:56

Venezuela’s economy will shrink by more than 40 per cent in the first quarter because of the unprecedented collapse in oil production and the resulting dearth of foreign currency, according to forecasts by a top Spanish-owned bank.

Banco Provincial, the local subsidiary of Spanish bank BBVA, predicted the economy of Venezuela, the world’s fifth-largest oil exporter, will shrink by 42 per cent in the first three months of the year, making it the sharpest contraction on record. 

Oil sector activity would drop by 69 per cent, the bank said, while the non-oil sector would contract by 33 per cent. The bank also said the unemployment rate would increase to 25 per cent. The official jobless rate is currently at about 18 per cent.

The grim figures are in line with a similar forecast in January by Spain’s BSCH bank, which predicted a contraction of 40 per cent n the first quarter and 9-30 per cent for the full year, depending on how quickly oil output recovers.

Venezuela produced 3.1m barrels per day in November, before output dropped to as low as 150,000 b/d because of  a strike led by employees at Petroleos de Venezuela, the state oil company, against the government of President Hugo Chavez.

Oil output has since been recovering, despite the government’s dismissal of nearly 16,000 PDVSA employees, including many skilled oil-field and refinery technicians.

Most of PDVSA’s oil traders have also been fired, leaving the company with hundreds of millions of dollars in uncollected receivables from third parties.

Mr Chavez said last week PDVSA had lifted its notice of force majeure, a clause companies can invoke when circumstances beyond its control render it unable to meet obligations to customers. 

Government officials say oil output is currently "near normal" levels, at around 2.6m b/d, but former PDVSA managers claim production is below 2m b/d. 

Venezuela’s economic woes have been compounded by the government’s decision to implement foreign exchange controls.

Regular sales of dollars from the central bank, which receives PDVSA’s foreign currency earnings, were suspended at the end of January due to the rapid decline in international reserves as a result of the strike.

The government has since created an institution to administer dollar sales to businesses requiring hard currency for essential imports, but the agency has yet to begin operations, strangling companies already reeling from the effects of the strike.

www.vheadline.com Posted: Sunday, March 09, 2003 By: Robert Rudnicki

According to Confederation of Trade Unions (CTV) secretary general Manuel Cova, 10% of Venezuelans face the risk of losing their jobs this year, amounting to around one million people. 

Cova claims that the reason for this problem is the ongoing political instability in the country and falling confidence in Venezuela's judicial system, following a number of decisions that the opposition has strongly questioned.

These two factors, Cova says are deterring necessary investment in job maintenance and creation.

The number of unemployed in Venezuela stands at around 17%, but industry chamber Conindustria is warning that this figure will increase to 27%, as businesses close as a result of recent maximum price controls on many goods. Posted: Sunday, March 09, 2003 By: Robert Rudnicki

CTV says 10% of Venezuelans will lose their jobs this year

According to Confederation of Trade Unions (CTV) secretary general Manuel Cova, 10% of Venezuelans face the risk of losing their jobs this year, amounting to around one million people. 

Cova claims that the reason for this problem is the ongoing political instability in the country and falling confidence in Venezuela's judicial system, following a number of decisions that the opposition has strongly questioned.

These two factors, Cova says are deterring necessary investment in job maintenance and creation.

The number of unemployed in Venezuela stands at around 17%, but industry chamber Conindustria is warning that this figure will increase to 27%, as businesses close as a result of recent maximum price controls on many goods.

www.vheadline.com Posted: Sunday, March 09, 2003 By: Robert Rudnicki

The government is currently reviewing its price control system on many basic food supplies as the maximum prices that were recently imposed have proved to be too low in some cases, cutting profit margins to such an extent that it has become uneconomical for producers to manufacture the goods and as a result shortages have appeared.

• In response to the shortages soldiers manned stalls at outdoor markets selling basic food supplies at discount prices.

The cost controls were introduced as inflation pushed the price of goods higher, causing the government to become increasingly concerned about the ability of poor Venezuelans to buy their basic needs.

www.vheadline.com Posted: Friday, March 07, 2003 By: Patrick J. O'Donoghue

Several of Venezuela’s leading eco-tourism ventures admit they have been hit hard by the December-January national stoppage but say they are ready to make a comeback in March once they have reassessed costs.

The Pinero Farm in South Cojedes usually gets plenty of ornithologists visiting between the months of December thru April to sight 1,310 species of birds in migration ... but this season several groups cancelled their visit citing "the political situation" in Caracas.

Even though there were no problems at the farm itself, tour companies complained that gasoline and food supplies were uncertain, meriting cancellation until the situation improves.

Orinoquia and Caura jungle camps in southeastern Venezuela have also been hit by the crisis. Embassy warnings to citizens not to visit Venezuela were heeded, according to Cacao Travel Group general manager Bernard Kroening, even though there were less problems obtaining gasoline in Ciudad Bolivar.

“If the situation continues as of present, we will be hard pressed … many camps have closed their doors.”

Kroening hopes things will pick up towards Easter and says the company will be concentrating on the domestic market.”

The latest offer is 200,000 bolivares ($125) for three nights lodging with full board, complete with a trip down the Orinoco River in the company of indigenous guides.