Fitch Ratings dubious about Chávez capacity to manage fiscal deficit

 
Credit risk firm Fitch Ratings said on Monday that upon the reelection of Venezuelan President Hugo Chávez on Sunday, there are many concerns about the capability of Venezuela to manage its fiscal deficit.

"The re-elected Government faces a challenge in adjusting its exchange rate policy, and considerable uncertainty remains over the government's ability to rein in the fiscal deficit, while at the same time maintaining economic growth and fighting inflation," informed Fitch in a statement cited by Reuters.

The firm warned that if adjustments to the country's economic policies are not made, the number of debts owned by the Government is likely to increase.

Translated by Jhean Cabrera