Venezuelan Central Bank (BCV) evaluates changes to improve system operation
Nelson denies that the BCV Merentes be financing Sidor (File)
The chairman of the Central Bank of Venezuela, Nelson Merentes, said that after meeting with entrepreneurs preparing changes to improve the operation of the BRT.
“Any model can be improved and we will surely make changes to address complaints, to meet the real economy.”
Employers have indicated that the supply of foreign exchange is low and the current regulation means that if they receive a small amount Cadivi excluded from the BRT.
In the Sitme companies buy foreign currency bonds with bolivars then resell them abroad for dollars that complement those receiving the official exchange rate Cadivi.
So far the system has been powered with bonds from private financial institutions but the roles are exhausted and investment banks repeatedly mentioned the proximity of a PDVSA bond issue or the Republic.
Nelson Merentes this regard states that “everything is possible” but stressed that “August is a month where the markets are sleeping outside.”
While a bond issue would increase the availability of papers to keep moving BRT, the downside is the increase in debt of the Republic does not represent a major burden but growing rapidly.
Between the first quarter of 2004 and the first quarter of this year the country’s dollar debt has doubled and is located at 58 000 199 000 000, according to official figures.
Nelson Merentes indicates that to expand the Sitme may compromise offer all types of bonds in dollars and not only titles of the Republic.
“Soon it will be able to transact any kind of bonus. If you have a bonus of Brazil, for example, you can settle here.”
Private banks have in their portfolio bonds from Argentina, Brazil and treasury of the United States.
It further states that “nearly 15% of what is traded on the Sitme comes from businesses, it gives you more sustainable because they are now private are not only feeding the BRT’s financial system.”
Sidor in gray zone
On June 30, Carlos de Oliveira, president of Sidor, told Guiana media that “the recovery plan is underpinned Sidor in a note that we are asking the Central Bank.”
On Monday of this week the union leader Jose Melendez said that the Central Bank approved the request, stating that Sidor was a credit of 2 billion to VEB to cancel debts to contractors.
But Nelson Merentes says that “the Central Bank has not funded Sidor.”
He added that the company issued a financial instrument that is buying the bank, without specifying whether it is public or private entities.
“There is part of the financial system that is buying but the Central Bank is not buying anything, what we do is to study the macroeconomic impact of any issue.”
The reform of the Central Bank Act, enacted this year allows banks who bought the “instruments” issued by Sidor them delivered to the desk of the Central Bank as collateral for funding.
Victor Salmerón
EL UNIVERSAL
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