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CARACAS, Thursday July 02, 2009 | Update

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Govn't to buy 60 percent of Banco de Venezuela

In this way, the government of President Hugo Chávez, who announced the nationalization of the bank 11 months ago, will own 96 percent of the shares of Banco de Venezuela.

The government will become the most powerful single actor in the Venezuelan financial system, with 25 percent of the sector (File Photo)

Economy
The Venezuelan government will pay Spanish group Santander USD 630 million out of a total of USD 1.05 billion agreed upon in May for Banco de Venezuela. This will be the first down payment made by the government for nationalizations in 2009.

According to the schedule disclosed by the government, in addition to the fund transfer, which represents 60 percent of the total sale price, the bill of sale will be signed on Friday as well, reported AFP.

The remaining USD 420 million will be paid in October and December 2009.

In this way, the government of President Hugo Chávez, who announced the nationalization of the bank 11 months ago, will own 96 percent of the shares of Banco de Venezuela.

Additionally, the government will become the most powerful single actor in the Venezuelan financial system, with 25 percent of the bank sector.

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Works flying high

05:09 PM. Economy. If any country has cashed in on the Bolivarian revolution, that is Brazil, particularly the private companies of the southern neighbor. Over the past five years, it has been awarded contracts for works to be carried out in Venezuela for over USD 14 billion. This puts it as the first recipient of government-to-government contracts, that is, without bidding, since Hugo Chávez took office.