Venezuela makes USD 378 million payment to cement makers

The remaining debt, amounting to USD 441 million, will be paid in four years, without any interest payments

Distribution problems and the government's decision to prioritize large works of infrastructure are hitting the supply of cement (File Photo)

Economy
In August 2008, the Venezuelan government signed agreements to purchase the subsidiaries of French building materials group Lafarge and Swiss cement group Holcim, and a year later it decided to pay for shares partially.

The government agreed to purchase the two companies for a total of USD 819 million, and as indicated by Diosdado Cabello, the Minister of Public Works and Housing, the two groups will get now more than 40 percent of the amount, equivalent to USD 378.4 million. "With this payment, the State takes possession of the companies in an official way."

According to the state-run news agency ABN, Cabello said that the remaining debt, amounting to USD 441 million, will be paid in four years, without any interest payments.

Meanwhile, the building of housing solutions remains affected by problems related to inputs supply, and the greatest difficulties are related to cement.

Although cement companies have been producing steadily, distribution has been difficult. Besides, the government has instructed the cement makers to allocate the bulk of production to large works.

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