Even though this is an article form an unfriendly bourgeois newspaper it does give an inkling of many changers occuring in venezuela as the revolution develops following on from progressive measures such as increased health eduction spending, creation and nationalisation of state enterprises under worker government control price controls exchange controls expansion of community media etc
Venezuelan president hugo chavez is threatening bankers with takeovers of financial institutions if they fail to follow government imposed lending norms.
Speaking to a crowd of small business leaders during a conference on thursday in Caracas the president said that the government would fine ....and intervent in banks that failed to give loans to specific industries as mandated by government rules
"Banks are obligated to give loans for housing, agriculture, co-operatives and microbusinesses and a banker who fails to follow the rules will be intervened according to the constitution and the laws.
Representatives for the venezuelan banking association could not be reached for comment
Chavez also told attendents at the conference that being rich is bad. "Those who have a lot of money need to donate it"
The chavez government has created a series of lending restrictions that force banks to devote 29% of all loans to a combination of home mortgages, agricultural activities and microcredits all at below market interest rates.
Pro chavez lawmakers are also working on a new banking law and bankers complain they're not being consulted on it
Many have warned chavez that imposing high market unfriendly restrictions on banks will end up damaging the financial system.
The former paratrooper became famous after leading a failed coup in early 1992 has vowed to foster a new type of socialism in venezuela under his tenure.
The self described leftist revolutionary believes banks must be forced to devote resources to specific sectors as a way to foster growth. He also believes central bank inderpendence is a "neo-liberal idea that ignores the needs of the poor.
Chavez has repeatedly threatened and pressurised central bank authorities to turn over money in the form of foreign exchange gains the profits earned after re-evaluating foreign reserves after a devaluation
Lawmakers are now looking for ways to cap the amount of money the central bank can hold in the form of foreign exchange reserves so the government can use the rest for social spending.
Venezuelan president hugo chavez is threatening bankers with takeovers of financial institutions if they fail to follow government imposed lending norms.
Speaking to a crowd of small business leaders during a conference on thursday in Caracas the president said that the government would fine ....and intervent in banks that failed to give loans to specific industries as mandated by government rules
"Banks are obligated to give loans for housing, agriculture, co-operatives and microbusinesses and a banker who fails to follow the rules will be intervened according to the constitution and the laws.
Representatives for the venezuelan banking association could not be reached for comment
Chavez also told attendents at the conference that being rich is bad. "Those who have a lot of money need to donate it"
The chavez government has created a series of lending restrictions that force banks to devote 29% of all loans to a combination of home mortgages, agricultural activities and microcredits all at below market interest rates.
Pro chavez lawmakers are also working on a new banking law and bankers complain they're not being consulted on it
Many have warned chavez that imposing high market unfriendly restrictions on banks will end up damaging the financial system.
The former paratrooper became famous after leading a failed coup in early 1992 has vowed to foster a new type of socialism in venezuela under his tenure.
The self described leftist revolutionary believes banks must be forced to devote resources to specific sectors as a way to foster growth. He also believes central bank inderpendence is a "neo-liberal idea that ignores the needs of the poor.
Chavez has repeatedly threatened and pressurised central bank authorities to turn over money in the form of foreign exchange gains the profits earned after re-evaluating foreign reserves after a devaluation
Lawmakers are now looking for ways to cap the amount of money the central bank can hold in the form of foreign exchange reserves so the government can use the rest for social spending.
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