LatAm News Venezuela

Bancoagrícola's Vice President of Finance, Alexander Pinilla, affirmed that the liquidity of the Salvadoran financial system remained positive in the first half of 2022. In this sense, Pinilla said that deposits in the Salvadoran financial system would continue to grow in the second half of 2022; however, he indicated that the growth rate of deposits would slow down. In this context, in the second quarter of 2022, Bancoagrícola's total deposits increased to USD 16.5 billion, while loans reached USD 15.5 billion.

Argentina's Minister of Economy, Sergio Massa, managed to close his first month in office with a debt placement of ARS 212,236 million. On Monday, in the second tender of August, the Secretary of Finance offered a bid for four securities maturing in 2022 and 2023. In this tender, the Treasury issued a Liquidity Bill (LELITE) maturing on September 30th, 2022; in addition, two discount bills (LEDE) maturing on December 16th, 2022, and January 31th, 2023, and an inflation-adjusted bill (CER) maturing on June 16th, 2023.

On Tuesday, Bolivia's President Luis Arce announced that he had approved the acquisition of USD 1,142 million in debt. According to studies, the country's external and internal indebtedness is currently at least 78.8% of the Gross Domestic Product (GDP). In detail, about 12 decrees were authorized by the Bolivian government to acquire debt contracts with the CAF, IDB, Fonplata, ICO, Eximba, KfW, and IFAD; to boost employment, health, water and sanitation, irrigation, climate change, roads, and energy projects, and to strengthen the State's statistical system and other public investment projects.

Costa Rica Report highlights

Although one of the "leitmotifs" of former President Alvarado Quesada was to leave the "house in order," this has been questioned by various political sectors, including the new President and economist, Rodrigo Chaves.

Administration of Rodrigo Chaves announced on June 22nd, 2022, the modification of the fiscal rule. This occurred after the National Child Welfare Agency (PANI) authorities raised alerts due to the restrictions to urgently allocate resources to private organizations that care for vulnerable minors since they denounced that they would run out of money to operate after June 30th.

On Monday, the Presidents of the nations that make up the Andean Community (CAN) - Colombia, Ecuador, Peru, and Bolivia - said they would like Venezuela, Chile, and Argentina to join the group. "If we manage to integrate Chile, Venezuela, and Argentina... I think this would change things significantly, and our voice would be heard more clearly on the world stage," said the Colombian President, Gustavo Petro. "I would like to express how important it would be for the Andean Community, and the benefits for its members, for Chile and Venezuela to rejoin," said the Peruvian President, Pedro Castillo.

The preparation of the General State Budget for 2023 will begin in September, and the Ministry of Finance already has a few starting points. One of them is the price of oil, one of the primary sources of income for the State's budget. According to the International Monetary Fund (IMF), the price of Ecuadorian oil will average USD 75.3 per barrel in 2023. With that price, the budget's oil revenues would fall by around USD 500 million compared to 2022, warned the former Minister of Finance, Fausto Ortiz.

At the end of January 2024, the total assets of the Venezuelan banking system amounted to Bs 331.66 billion ($9.16 billion), showing a year-on-year variation of +24.49%. This increase was materialized in the following items: loan portfolio (+93.82%) and cash and cash equivalents (+37.22%).

The loan portfolio recorded a value of $1.47 billion, representing 16.00% of total assets. The portfolio delinquency rate decreased by 1.20 percentage points to 1.97%. The allowance for loan losses on the gross immobilized portfolio, on the other hand, grew by 35.67 percentage points, showing a coverage indicator of 239.12%.

Liabilities increased by 30.63% with respect to the same period of the previous year, amounting to Bs 262.27 billion ($7.24 billion). Net equity was Bs 68.26 billion ($1.89 billion), an increase of 7.92% with respect to the same period of 2023, maintaining a balance sheet weight of 20.58%.

As for the year-on-year evolution of the credit accounts, microcredits increased 57.90%, no loans were granted to the tourism sector and loans to the manufacturing activity decreased 0.68%. The agri-food portfolio recorded an increase of 93.05%.

Source: Finanzas Digital

Venezuela Report highlights

Amid the new reality that the Russia-Ukraine conflict has imposed on the global energy sector, compromising the supply of gas and oil, the U.S. government has shown signs of evaluating a possible "easing" of the sanctions imposed on the Venezuelan government in an attempt to allow Venezuelan crude oil access to the international market, and in particular to recover its share in the U.S. market.

If the negotiations between the high-level delegations of both countries reach concrete results, Venezuela could experience a significant economic reactivation with the recovery, even partially, of the flow of oil exports from the government to its natural market, the U.S. East Coast.

The Executive Vice-President of the Republic, Delcy Rodríguez, held a meeting with the Venezuelan financial and securities sector on Friday, February 9, where it was agreed to prepare a document that will allow the development of both sectors.

Rodríguez proposed that the agreement be from 2024 to 2030 in which the public policy "to move forward" is established.

He explained that the methodology for this meeting is to take the proposals from both the financial and securities sectors and then return them to them with their vision.

"The year 2023 started with some disturbances and difficulties, this 2024 began with greater tranquility and that should encourage us to take care of that tranquility, so that you can have an important expansion in the development of the productive capacities that exist in Venezuela", said Rodriguez in a video posted in his account in X (formerly Twitter).

Source: Finanzas Digital

Luigi Pisella, president of the Venezuelan Confederation of Industrialists (Conindustria), presented the results of the industrial situation survey for the fourth quarter of 2023, which showed a growth in private national production of 9%.

However, when totaling for the year, the result was a contraction of -4.3.

This result is explained by a reduction in private domestic production of -4.7% in the first quarter of 2023, -12.3% in the second quarter, -2.1% in the third quarter and a growth of 9% in the fourth quarter.

"That is to say, this growth (of 9%) did not manage to compensate the fall we were bringing in the year", affirmed the president of Conindustria in a press conference this Thursday, February 15.

He also points out that in the IV quarter of 2022 there was also a reduction of -10%, this means that for four consecutive quarters private national production contracted.

Source: Finanzas Digital

Focus Economics, a company specialized in macroeconomic analysis, stated in its February 2024 monthly survey, that Venezuela's economic growth for this year could close at 4.3% interannual.

It is worth mentioning that this international firm gathers the forecasts on the Caribbean country of 15 analysis firms and/or investment banks.

It pointed out that inflation at the end of this year could be 156.9%, while the unofficial exchange rate could end at Bs. 82.28 per dollar.

He also said that the country's total exports could close at US$ 12.0 billion and total imports could be US$ 10.4 billion.

Likewise, he estimated that the growth of private consumption would be 3.7% inter-annual, when last month he predicted that it would be 4.5%.

This information was released by economist Asdrúbal Oliveros, through his social networks.

Source: Banca y Negocios

The economist and specialist in cryptocurrencies, Aarón Olmos, expressed that the policy applied by the Central Bank of Venezuela (BCV) to keep the exchange rate stabilized in the country has "slowed down the speed of the price increase".

Likewise, he highlighted that prices in Venezuela are still fixed in foreign currency, but not necessarily in dollars, given that if they are in the west of the country, they are paid in Colombian pesos, in the Plains and in the south of the nation they are paid in gold.

"Trying to maintain this exchange rate, although it has been costly, the fact of going to the market to make the purchase is complicated because the precariousness of the salary does not play in favor of the worker", he added.

He said that the exchange rate stability "may be threatened by a lower cash flow from the Executive", since "a great amount of money is being burned to try" to maintain the exchange rate figure.

Olmos commented that the non-official exchange rate has gone back almost 5%: "the exchange stability so far depends a lot on the capacity of the National Executive to generate cash flows".

According to what was stated this Tuesday by Iran's Deputy Minister of the Interior for Economic Affairs, Mohsen Kushki Tabar, the agricultural cooperation agreement between Venezuela and Iran provides for the cultivation of one million hectares by Tehran on Venezuelan soil. It should be noted that the agreement mentioned above is part of the 20-year cooperation plan signed in June during Nicolás Maduro's visit to Iran; the Deputy Minister highlighted in this regard that the agreement occurs within the framework of the crisis of strategic food reserves in the world

Source: Ultimas Noticias

Venezuela Report highlights

According to what was announced by Roscosmos, the Russian space agency, the country plans to locate a measurement station for its GLONASS satellite navigation system, analogous to the American GPS, the European Galileo, and the Chinese BeiDou, in Venezuelan territory, with which it seeks to guarantee safe navigation to consumers who use PPP (Precise Point Positioning) technology. In this regard, within the framework of the Russian-Venezuelan intergovernmental agreement ratified on June 11th, this station is expected to be installed in the Caribbean country.

Source: Swissinfo

According to what was announced by Roscosmos, the Russian space agency, the country plans to locate a measurement station for its GLONASS satellite navigation system, analogous to the American GPS, the European Galileo, and the Chinese BeiDou, in Venezuelan territory, with which it seeks to guarantee safe navigation to consumers who use PPP (Precise Point Positioning) technology. In this regard, within the framework of the Russian-Venezuelan intergovernmental agreement ratified on June 11th, this station is expected to be installed in the Caribbean country.

Source: Swissinfo

According to what was announced by Roscosmos, the Russian space agency, the country plans to locate a measurement station for its GLONASS satellite navigation system, analogous to the American GPS, the European Galileo, and the Chinese BeiDou, in Venezuelan territory, with which it seeks to guarantee safe navigation to consumers who use PPP (Precise Point Positioning) technology. In this regard, within the framework of the Russian-Venezuelan intergovernmental agreement ratified on June 11th, this station is expected to be installed in the Caribbean country.

Source: Swissinfo

El Salvador

El Salvador's banking sector assures that the country's financial liquidity remained positive in June

Argentina

Argentina's Ministry of Economy raises ARS 286,000 million in the local debt market

Bolivia

Arce authorizes USD 1,142 million in new foreign debt

Venezuela

Countries of the Andean Community press for Venezuela, Chile, and Argentina to join the bloc

Ecuador

The IMF suggests a price of USD 75 per barrel of oil for Ecuador's 2023 proforma budget

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Newsletters

Venezuelan banks' loan portfolio grew 93.82% year-on-year at the end of January 2024

Government and financial sector agree on roadmap to develop productive capacities

Conindustria: private domestic production decreased 4.3% in 2023

Focus Economics: Private consumption growth at year-end could be 3.7% year-on-year in the country

Source: Banca y Negocios

Venezuela

Between US$ 20 and US$ 30 per month: What Venezuelans abroad send as remittances to their families

Newsletters

Iran intends to cultivate a million hectares in Venezuela

Russia plans to install a space station for its GLONASS navigation system

Venezuela and Equatorial Guinea to set a work route with PDVSA for oil-related services

Sundde evaluates the cost structures of major food importers

Venezuela

Iranians seek 1 million hectares to produce food in Venezuela

An Iranian official says Venezuela has agreed to provide 1 million hectares of farmland for Iran's overseas farming projects to secure the food the Persian nation needs to support its security strategy in this area.

El Salvador

Maduro announces double-digit growth in the first semester, but does not provide data

Nicolás Maduro reported that the nation's economy registered a double-digit growth rate in the last semester, but without providing data on the magnitude of the GDP expansion. "This year, there is excellent news

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