Venezuela Begins 2017 With Lowest Foreign Reserves in 21 Years

By: Karina Martín - Jan 4, 2017, 10:32 am
The Maduro regime has burned through substantial foreign currency reserves in the past year (
The Maduro regime has burned through substantial foreign currency reserves in the past year (Globovision).


The Central Bank of Venezuela (BCV) experienced a 32.78% fall in the country’s foreign reserves at the close of 2016.

As of Monday, January 2, international reserves stood at USD $11 billion; a considerable decline considering that on the same date last year (2016), the country had USD $16.3 billion in foreign reserves.

Venezuela has not had such a precarious level of foreign reserves in 21 years, when this indicator stood at USD $10.6 billion in 1995.

“Basically, the government is burning though its international reserves to pay to service its debt,” said economist Jesus Casique. Currently the country’s foreign debt is at USD $150 billion.

“I do not know where they are going to scrape together the financing. If you liquidate debt but simultaneously take on even more debt, you are mortgaging Venezuelans,” said Casique, noting that by 2015 USD $ 2.4 billion from the International Monetary Fund (IMF) had been withdrawn via Special Drawing Rights (SDRs).

The Venezuelan regime has repeatedly alleged that the reason for the economic crisis that the country is suffering is due to the sustained fall of the oil prices from 2014, in addition to a supposed “economic war” that, according to Chavismo, is orchestrated by external enemies based in the United States, Spain, and Colombia, among others, in order to generate “destabilization”.

During 2016 BCV did not publish any data on inflation, gross domestic product (GDP) or the country’s scarcity indicators.

The data that has been obtained, have been forecasts by international organizations which have indicated that the Venezuelan GDP will shrink by 10% and that inflation will exceed 500%.

Venezuelan President Nicolás Maduro has agreed with members of the Organization of Petroleum Exporting Countries (OPEC) and other nations outside the cartel that will cut output in order to boost oil prices.

Sources: El Universal, El Nacional, La Patilla

Karina Martín Karina Martín

Karina Martín is a Venezuelan reporter with the PanAm Post based in Valencia. She holds a bachelor's degree in Modern Languages from the Arturo Michelena University.

Argentina to Bet Big on Public Works to Accelerate Economic Recovery

By: Raquel García - @venturaG79 - Jan 4, 2017, 6:01 am

EspañolOfficials in Argentina said they plan to increase the development of public works during the first quarter of 2017 in hopes of boosting the economy and the rate of growth in the construction sector, one of the hardest hit by the recession. "Housing, water, sewage, irrigation, flood defense ... Public works are going to explode this year," Interior Minister Rogelio Frigerio told La Nación. President Mauricio Macri's administration is reportedly allocating AR $15,766 million (US $978,427,520) to such projects throughout the year, 46 percent more than what was earmarked in 2016. Undersecretary of Housing Iván Kerr said the curve of execution of these projects last year went from "less to more," but that in 2017 the idea is to take a more linear approach. "Once a project is in progress," he said, "we must keep the flow of funds permanent so it does not stop." In the first quarter, officials estimated that 5,000 homes will break ground, while another 20,000 that will be improved or completed. Read More: Maduro Regime Forced to Buy Its Own Bonds as Markets Shun Venezuela Read More: Venezuela: State Raw Materials Monopoly Threatens Journalism According to official figures, the new projects will require the creation of 85,000 construction jobs, which severely suffered from unemployment in 2016. The hope is also that the projects will increase financing for housing through the Procrear plan, a state mortgage loan program that created 3,000 houses last year and which should create another 1,500 by March 2017. Macri's administration is also reprortedly looking to invest in environmental resources, earmarking AR $9 billion (US $ 558,180,000) for developing sewers, lighting and roads, among other things. Undersecretary for Habitat and Development Marina Klemensiewicz, said 532 projects will be undertaken in 2017, more than double the 222 from the last year. During the first quarter, 144 initiatives will start nationwide and another 177 will be added in the second. The Ministry of the Interior will have more than AR $9 billion (US $ 601,097,840) at its disposal. Twenty-five percent of these funds are set to be used in the first quarter, officials said. googletag.cmd.push(function() { googletag.display('div-gpt-ad-1459522593195-0'); });   Minister Frigerio told La Nación that he was satisfied with the problems he had solved, most of which he said had been inherited from previous administrations — such as a debt of AR $10 billion (US $620,200,000), lack of controls, corruption and the slow movement of public works projects. "Despite that, we ended up executing 90 percent of the budget and 100 percent of the budget credits," he said. Source: La Nación.

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