President Chávez announces economic measures against the crisis

The agent chief executive is reunited with his ministers in Miraflores (ABN)

06:05 p.m. Caracas. - The president of the Republic, Hugo Chavez, announced in radio chain and television the adjustment of the price bases of the barrel of petroleum to 40 dollars for effects of the calculation of the national budget of 2009, like part of the economic measures anticipated to be revealed today. The rate of the Tax to Valor Agregado (IVA) was also fit, of effective 9% until now, to 12%, with an increase of three percentage points.

It also informed that the goal of oil production, according to cuts of OPEC, happens to 3.172.000 daily barrels. It is possible to remember that to the law of Budget of 2009 approved by the Commission of Finances of the National Assembly, the barrel of crude of the Venezuelan oil basket was fixed to 60 dollars.

Immediately afterwards, the Chief of State announced the reduction of the amount of the budget in 6,7%, of BsF 167,474 million to BsF 156,388 million, equivalent to 11 million strong bolivars. He denied, nevertheless, that is going away to produce a devaluation of the currency, widely anticipated by analysts in recent days.

He assured that this goal, established by decree, will be obtained by means of a strict execution of the cost, reduction of the sumptuary expenses (acquisition of executive vehicles, remodelings, furniture, promotional material, unnecessary publicity, corporative communications, services, gifts, entertainments, update of technological platforms and unnecessary missions to the outside, indicated the President) and an adjustment in the levels superiors of the list of engaged the beings public.

In this sense, said that it will review the pays of magistrates of the Supreme Court of Justice and directors of the Electoral Supreme Council, and affirmed that deputies of Assembly National, who considered that they can legislate in this matter, happen 4,300 BsF monthly. Also it asked to the members of the economic cabinet to increase the efficiency in the collection of tributes, especially the IVA and the Tax on the Rent.

More ahead it alerted to the deprived bankers when warning that his government is not going “to make nothing to defend them of an artificial crisis, generated by those buddies of you who have radios and television transmitters and much money”, going in particular to the industralists Juan Carlos Escotet and Thrown Arístides Maza, leaders of Banesco and Caroní Bank, respectively.

Similarly, it denied that one is going away to produce an increase of the price of the gasoline in spite of being “cheapest of the world”, according to said. “It is not the moment”, expressed with respect to this point.

The Government also will increase the level of internal indebtedness in 22 billions of BsF, on 12 billions considered originally, which will take the level of the acquired internal debt during the year to BsF 34 billions.

With respect to the increase of minimum wage corresponding to this year, he announced that he will be of 20% and that will take place in two stages: 10% to first of May and 10% to the month of September. The increase will be effective for workers of the central administration, decentralized, pensioned of the social insurance and working missions like Mothers of the District, it needed. This decision, detailed, has a cost of 3,407 million BsF.

It within the framework announced that in the next days the collective hiring of the Meter of Caracas will be signed, one of the pending subjects that it came dragging, of a series of labor conflicts that still continue.

On the other hand, minister of Economy and Finanzas, Alí Rodriguez, took part to stand out that the public investment will have three great priorities: energy, agro-alimentary sector and house. Of these, it limited Chávez, the agricultural sector must have a special emphasis.

Similarly, the treasuries of public the financial organizations will be integrated, according to announced.

At the beginning of its speech, Chávez talked about in detail to all the social missions and programs of its administration in diverse scopes. “This we must preserve it”, said the agent chief executive, whom it indicated that for it the measures studied by the Executive will be taken.

Again the president remembered that in the United States three months are had lost more than two million uses in the last, whereas in Venezuela this number descended to 7.4% to the month of February. “Now in Venezuela nobody has felt the most mini breeze or direct hit in a year that takes the crisis already”, assured.

Also, it reiterated for the second time in the week the nationalization of the Bank of Venezuela, affirming that “already that bank today is not worth what was worth a year ago (...) like the Argentineans those that wanted to request average country to us by Sidor”, with reference to the company Ternium, main shareholder of the Iron and steel of the Orinoco.

To almost conclude, it declared that “the crisis of the capitalist system is going to fortify this revolution and are going we it to see”.

Freddy Fields
THE UNIVERSAL ONE