Chavez Recognizes Banks/Steel Companies Anti-Venezuelan Practices: Promises to End Them

By Jorge Rueda

Venezuelan President Hugo Chavez on Thursday threatened to nationalize the country's banks and largest steel producer, accusing them of unscrupulous practices.
"Private banks have to give priority to financing the industrial sectors of Venezuela at low cost," Chavez said. "If banks don't agree with this, it's better that they go, that they turn over the banks to me, that we nationalize them and get all the banks to work for the development of the country and not to speculate and produce huge profits."

It was not clear if Chavez was only referring to Venezuelan banks like Mercantil Servicios Financieros CA and Banco Provincial SA, or if he was also aiming the threat at major international banks with subsidiaries in the country, such as Citigroup Inc. and Spanish banks Banco Bilbao Vizcaya Argentaria SA and Banco Santander Central Hispano SA.

Chavez also warned the government could take over steel producer Sidor, which is majority controlled by Luxembourg-based Ternium SA. Shares of Ternium fell 3.9 percent to $26.15 in U.S. trading after Chavez's comments.

Sidor "has created a monopoly" and sold the bulk of its production overseas, forcing local producers to import tubes and other products from China and elsewhere, Chavez said.

"If the company Sidor ... does not immediately agree to change this process, they will obligate me to nationalize it," Chavez said.

"I prefer not to," Chavez added, as he ordered Mining Minister Jose Khan to depart immediately for the company's headquarters and come back with a recommendation with 24 hours.

"Sidor has to produce and give priority to our national industries ... and at low cost," he said.

Chavez initiated a nationalization drive in January that is bringing the country's largest telephone company CANTV and the electricity sector under state control.

http://www.wilmingtonstar.com


http://hiddenmysteries.com/xcart/product.php?productid=17319