Chávez threatens to nationalize banks failing to grant agricultural loans

Venezuela's President Hugo Chávez said Sunday that private banks are not granting agricultural loans to small and medium-sized farmers and growers. Therefore, he sent a message to Venezuelan bankers: "Nationalizing banks is not a problem for me. Both the Constitution and the laws have to be enforced."

Chávez's message came during the 378th edition of Hello President, his weekly radio and TV show, which was broadcast from the city of Santa Bárbara de Barinas, southwestern state of Barinas. His remarks took aim on the owners of Venezuela's top private banks: Banesco, Provincial and Mercantil.

Chávez singled out the president of private bank Banesco, Banco Universal: "(Juan Carlos) Escotet, let me know if you cannot (obey the law under which banks in Venezuela ought to grant agricultural loans). If you cannot, then tell me how much does your bank cost and we will nationalize it at once," Chávez said.

The Venezuelan president instructed his Vice President Elías Jaua to meet with bankers to talk about the issue. However, he said that agricultural loans would no longer be granted directly by banks to the small and medium-sized farmers and growers. He explained that the money should be transferred to the Executive Office to set a new fund called "Ezequiel Zamora" (a leader of the Venezuelan Federal War).

Chávez also announced that Juan Carlos Loyo, the Minister of Agriculture and Lands, will leave the cabinet because he is sick. Vice President Jaua will be the new minister of Agriculture.

rtheis@eluniversal.com

Translated by Gerardo Cárdenas