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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IISS: The FARC financed Chávez before 1999

10:07 AM. DIPLOMACY. Admired by the Colombian guerrilla after his coup attempt in 1992, the then lieutenant colonel Hugo Chávez Frías received financial support by the Colombian Revolutionary Armed Forces (FARC) for his projects after his capture that year. This mostly explains the relationship and "debt" between the parties, as revealed by a paper of the International Institute for Strategic Studies (IISS) of the United Kingdom.