Chávez takes control
of third largest bank
by Keith Richmond
President Hugo Chávez has nationalised the Banco de Venezuela, the country’s third largest bank, in a move which will allow the government to assert greater state control of the economy.
After months of negotiations, the government has agreed to pay the Spanish banking giant Santander $1.05 billion (£660 million) for its Venezuelan subsidiary. Santander bought the bank for $351million when it was privatised in 1996.
Mr Chávez’ leftist government has spent nearly £15 billion nationalising some of the country’s biggest oil, steel, electricity and telecommunications companies.
Taking businesses in what he describes as “strategic sectors” of the economy into public ownership will, he says, ensure that they are run for the benefit of all Venezuelans and is at the heart of his socialist programme.
Vice-President Ramón Carrizalez said the move was “a great leap towards increasing democratic control of our economy’ and Michel Goguikian, president of Banco
de Venezuela, said the deal was “very satisfactory” to both sides
by Keith Richmond
President Hugo Chávez has nationalised the Banco de Venezuela, the country’s third largest bank, in a move which will allow the government to assert greater state control of the economy.
After months of negotiations, the government has agreed to pay the Spanish banking giant Santander $1.05 billion (£660 million) for its Venezuelan subsidiary. Santander bought the bank for $351million when it was privatised in 1996.
Mr Chávez’ leftist government has spent nearly £15 billion nationalising some of the country’s biggest oil, steel, electricity and telecommunications companies.
Taking businesses in what he describes as “strategic sectors” of the economy into public ownership will, he says, ensure that they are run for the benefit of all Venezuelans and is at the heart of his socialist programme.
Vice-President Ramón Carrizalez said the move was “a great leap towards increasing democratic control of our economy’ and Michel Goguikian, president of Banco de Venezuela, said the deal was “very satisfactory” to both sides.
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