Venezuela's banking sector reports the highest return in the region
Fitch Ratings estimates that the Venezuelan economy may experience a drop in dynamism and grow 1.6% in 2013
However, Fitch claimed that return may drop in 2013 from its historical high levels because of lower interest rate spread and higher pressure on banking fees.
Fitch warned that "solid return and regulations on the payment in cash of dividends (up to 50% of net profits) led to the preservation of capitalization in Venezuelan banks in 2012."
The firm added that government control over banking fees continues limiting income diversification and prevents improvement of efficiency ratio, and therefore of the return ratio.
Fitch estimated that the Venezuelan economy would grow 1.6% this year, falling from the 5.1% ceiling reported in 2012. The drop is attributed to lack of fiscal stimulus, lower household consumption, the regulations that the private sector must deal with to buy US dollars in the foreign exchange market, and potential adjustments in the foreign exchange rate.
Moreover, the firm projected that average inflation may jump to 24.3%.
Translated by Jhean Cabrera
"Cocoa is to Venezuelans what wine is to the French," says Alejandro Prosperi, head of the Venezuelan Chamber of Cocoa, using this simile to express the paramount importance or the cocoa industry for the country. Often times heralded as "the best cocoa in the world," a passion for quality dating back to the sixteenth century has made Venezuelan cocoa growers to enjoy high prestige at international level and their product to be among the most sought-after in the world.