Spain gives green light to Venezuelan bank takeover

Spain’s government will not oppose the planned nationalization of the Banco de Venezuela- a subsidiary of Spanish firm Banco Santander. “We will not intervene” Spanish Deputy Prime Minister Maria Teresa de la Vega said last week as Venezuelan president Hugo Chavez tried to assure creditors that the bank’s nationalization would “strengthen the Venezuelan financial system.”

It’s unknown if further bank takeovers will occur in Venezuela; several foreign firms like Citigroup and Spain’s BBVA have units in the South American country.

Chavez’ plan was met with opposition by Venezuela's largest business chamber- Fedecamaras- who also rejected numerous presidential decrees enacted last month:

The new laws includes measures which would set up neighborhood-based militias, move the country towards a socialist economy and increase state control over agriculture.

The decrees met with opposition from Fedecamaras, the Venezuelan federation of chambers of commerce.

Jose Manuel Gonzalez, a business chamber leader of Fedecamaras, said: "We ask the president: Why does he fear democracy?"

He said that the package of laws included socialist concepts that voters rejected last year as part of a proposed overhaul of Venezuela's constitution.
"We are sure that this is nothing more than imposing the reform project that was rejected in December," Gonzalez said.

Image- AFP

Sources- The latin Americanist, International Herald Tribune, Al Jazeera English, Wall Street Journal, Reuters, Canadian Press