Don't miss

Replay


LATEST SHOWS

THE INTERVIEW

Turkish troops to go further into Syria, says foreign minister

Read more

EYE ON AFRICA

Court ruling expected on Gabon's contested election results

Read more

MEDIAWATCH

Clinton's Comedy Turn

Read more

THE WORLD THIS WEEK

Sarkozy's Populist Pivot, Bahamas Leaks, Syria Truce, Rome Olympic Bid (Part 2)

Read more

THE WORLD THIS WEEK

US Police Shootings: Race relations and the race to the White House (Part 1)

Read more

#TECH 24

Breaking the wall between technology and people

Read more

FRANCE IN FOCUS

Rural France: Challenges and opportunities

Read more

REPORTERS

Video: In Burma, ex-political prisoners struggle to return to normal life

Read more

ENCORE!

Xavier Dolan: Wunderkind of Québecquois cinema

Read more

Americas

Chavez orders two more banks to be nationalised

Text by News Wires

Latest update : 2009-12-04

Venezuela's leftist President Hugo Chavez said on Thursday that he had ordered two more banks to be nationalised amid an inquiry into their alleged accounting irregularities. Chavez earlier this week dissolved two other private banks.

AFP - Venezuela's leftist President Hugo Chavez said Thursday he had ordered the nationalization of two more banks shut down by his government to investigate alleged accounting irregularities.
   
News that the two privately owned banks, Confederado and Bolivar, were the latest targets of Chavez's efforts to remake the economy prompted Venezuela's currency and bonds to plunge in open trading.
   
"Once they have been rehabilitated the Bolivar and Confederado banks will become part of the public financial system," Chavez told a televised meeting of economic ministers.
   
Chavez earlier this week dissolved two other private banks -- Banco Canarias and BanPro -- after a series of nationalizations in other sectors.
   
Since taking office in 2007, Chavez has moved to control firms in the electricity production, cement, steel, oil services and banking industries.
   
More than 70 percent of the Venezuelan banking sector is privately owned, but the state has become the main financial actor, having nationalized in May Banco de Venezuela, the country's third-largest bank and previously under the ownership of Spanish group Santander.
   
Chavez has indicated he may target more private banks, which he accused of having forsaken their lending "mission" in order to specialize in "financial speculation."
   
This comes against the backdrop of a slowing Venezuelan economy.
   
According to JP Morgan, a US-based financial services firm, gross domestic product will shrink 2.5 percent this year, as foreign investment and the current account balance also worsen.

Date created : 2009-12-04

COMMENT(S)