Unversed in debt details, Venezuelans desperate for any relief

People line up to pay for their fruits and vegetables at a street market in Caracas, Venezuela November 3, 2017.

By Alexandra Ulmer and Andrew Cawthorne

CARACAS (Reuters) – Venezuelans heaving under an unprecedented economic meltdown know little about the finer points of foreign debt negotiations, but long for anything that would put more food on their plate and slow the world’s highest inflation.

Few on the streets of capital Caracas really understood unpopular leftist President Nicolas Maduro’s announcement this week that he would seek to refinance the oil-rich nation’s heavy bond burden of $60 billion – or about $2,000 per person.

But those interviewed by Reuters said they were hoping any deals between the government and its multiple foreign creditors would free up foreign currency to increase imports of scarce food, medicine, and basic products.

“Maybe it will work, and improve the country,” said Johny Vargas, 53, a construction worker who says he often only eats twice a day because his salary is gobbled up by price increases.

“Everything is so expensive. There’s no food, nothing. Maduro’s useless. Look at the bad state we’re in.”

Up to now, Venezuela’s ruling Socialist Party has prioritized debt payments by slashing imports, compounding four years of recession and shortages on the shelves.

Should a debt renegotiation be reached, it could free more money in the short-term for the government to bring in basic foods and medicines.

But Wall Street is skeptical, and so are many Venezuelans.

“We can’t have strong negotiations. We don’t have the credibility to sit down and make requests,” said 35 year-old accountant Mayerling Delgado, referring to Venezuela’s increasingly fraught relations with many other countries.

“So we have to pay,” she added in a resigned tone, in a busy Caracas plaza.

Experts have long warned that debt accrued under late leader Hugo Chavez was unsustainable, and urged Maduro’s government to refinance its debt load.

But pursuing such an operation now is near impossible given Venezuela’s economic mess, a dearth of technocrats in the government, and, especially, sanctions that bar U.S. banks from participating in or negotiating new Venezuelan debt deals.

 

NOT PAYING IS WORSE?

Most Venezuelans balk at the idea of a default, which would trigger lawsuits by creditors seeking to seize assets such as refineries in the United States. That could plunge the OPEC nation of 30 million people into even worse hardship.

“The majority of the population has consistently perceived a default as a negative move that could hurt the country’s economy,” said economist Luis Vicente Leon of pollster Datanalisis.

But with many analysts viewing a default as ultimately unavoidable given the parlous state of Venezuela’s coffers, some said it might be better to bite the bullet.

“What’s the science behind paying when you’ve already lost? It’s not what we as Venezuelans want … but there’s no other way out, unfortunately,” said beautician Harlee Tovitto, 42. She plans to emigrate to neighboring Colombia soon because she can no longer afford clothes or insurance for her three children.

Amid a deepening spat with U.S. President Donald Trump’s administration, some Venezuelans think Caracas would find a way out of its bond mess if it weren’t for the U.S. sanctions.

“If Venezuela has always paid its debt … why can’t they refinance?,” said Rafael Moreno, 30, a lawyer and former Chavez supporter who now says he does not back either the government or opposition.

 

(Reporting by Alexandra Ulmer and Andrew Cawthorne, Editing by Rosalba O’Brien)

 

After bloodshed, Venezuelan government and foes battle for votes

After bloodshed, Venezuelan government and foes battle for votes

By Andrew Cawthorne and Francisco Aguilar

BARINAS, Venezuela (Reuters) – Tirelessly traversing the lethargic plains of Venezuela, a brother of former leader Hugo Chavez and an ally of a famous opposition detainee vie for votes.

The governorship race in Barinas state – the Chavez family’s stronghold – is the most emblematic of state elections taking place nationwide on Sunday just weeks after opposition-led protests that shook Venezuela and claimed at least 125 lives.

“At every rally, Hugo Chavez is out front, showing us the way,” enthuses Argenis Chavez, 59, an electrical engineer and incumbent governor, jumping on a bike and evoking his late elder brother at every campaign stop.

“In Barinas, defeating the government means defeating the Chavez family who have wielded power at whim for 18 years,” counters opposition rival Freddy Superlano, 41, wearing a shirt with the image of his arrested party leader Leopoldo Lopez.

This year’s prolonged protests failed to bring down the government of President Nicolas Maduro, but they hardened global opinion against the ruling socialists and led to U.S. sanctions.

Now, opposition leaders want their demoralized supporters to turn out en masse at the gubernatorial polls to overturn Maduro’s majority in 20 of Venezuela’s 23 states.

The government, in turn, wants to minimize seemingly inevitable losses, and trumpet the election as proof against accusations of autocracy in Venezuela.

“Look at our ‘dictatorship’ then: an election where most candidates are from the opposition!” Chavez ironically told Reuters, as red-shirted supporters danced around him at a rally.

With voters angry over a crushing economic crisis, polls show the opposition coalition would win handily in normal circumstances. One recent survey gave the coalition, which aspires to win 18 governorships, 44.7 percent of voter intentions versus 21.1 percent for the government.

SKEWED PLAYING FIELD?

Circumstances are far from normal in Venezuela, however, and the government has threatened to ban any candidates linked to violence in protests.

Furthermore, as in past elections during the ruling “Chavismo” movement’s 18-year grip on Venezuela, state resources are being mobilized heavily for official candidates.

Distribution of subsidized food at government rallies is commonplace, state-run companies lend transport for the events, and state media give Maduro’s candidates unfettered air-time. One opposition candidate’s brother has been arrested for alleged car theft in what the coalition says is an attempt to intimidate its ranks.

Perhaps the biggest disadvantage for the opposition is the electronic ballot sheet itself.

Despite primaries to choose a single opposition candidate per state from the plethora of parties within the Democratic Unity coalition, the pro-Maduro election board is declining to modify the ballot list to narrow it down to one name.

All initial candidates from before the primaries are listed on the ballot instead, something that could confuse opposition supporters and dilute their vote, benefiting the ruling Socialist Party’s candidates.

Further stoking opposition supporters’ skepticism, the election board is using a new vote machine provider after long-term partner Smartmatic accused it of inflating numbers in July’s controversial election of a Constituent Assembly super-body.

“OPPOSITION WANTS WAR”

On a walkabout in an unpaved shantytown on the outskirts of Barinas city, Superlano told Reuters government candidates were using helicopters to campaign while he and other opposition aspirants spent hours on the road to reach remote communities.

The government was also exploiting Venezuelans’ hunger, during a period of unprecedented scarcity, by handing out food bags in return for promises of votes, he said.

“It’s a macabre plan,” said Superlano, a lawmaker from Lopez’s Popular Will party who won the opposition primary in Barinas. “Even with all that, they are losing!”

Having dealt a hugely symbolic blow to “Chavismo” by winning five of six congress seats for Barinas in 2015 elections, the opposition now wants to end 18 years of nearly unbroken control of the governorship by Chavez family members.

While there is widespread discontent over food shortages, idle land and rising malnutrition in a fertile region that should be Venezuela’s bread basket, the government is running a rigorous campaign and painting Superlano as “the candidate of the violence” in reference to this year’s protests.

Maduro supporters say the opposition, backed by Venezuela’s elite and the U.S. government, is intent on taking power by force to seize control of the nation’s oil riches.

“They want war for Venezuela. We want peace,” said 65-year-old retiree Ramon Alvarran, proudly wearing a red T-shirt depicting the eyes of Hugo Chavez at a rally for his brother.

Elsewhere though, resentment against Maduro is palpable.

“My kids don’t have a crumb in their stomachs yet today,” said Daris Gonzalez, 36, whose three children had not eaten by lunchtime. Like many in her poor and once staunchly “Chavista” neighborhood, Gonzalez is now leaning toward the opposition.

“There has to be change. We cannot go on like this.”

Offsetting such sentiment, many young grassroots opposition supporters feel their leaders have sold out – and betrayed the memory of slain protesters – by entering an election on an unfair playing field. Abstentions could hurt their numbers.

Should the opposition triumph on Sunday, the government can limit the impact by restricting funding and taking authority away from the governors’ offices, as it has done in the past when offices have fallen to opponents.

Any overt dirty tricks, however, risk bringing more international sanctions or torpedoing an already fragile, foreign-led mediation with the opposition that Maduro needs to improve his international image.

Following the gubernatorial election, the opposition wants to shift attention to demanding a date, and guarantee of free conditions, for the 2018 presidential election to advance their ultimate goal of ending socialist rule.

“People are very angry and their anger has a face: Maduro,” said Carlos Ocariz, an opposition candidate trying to hold Miranda state for the opposition against a rising star on the government side, Hector Rodriguez.

(Reporting by Andrew Cawthorne and Francisco Aguilar; Editing by Alexandra Ulmer and Tom Brown)

Venezuela inflation so far this year at 176 percent: opposition

FILE PHOTO - A cashier counts bolivar notes at a butchery in a public market in Caracas, Venezuela January 22, 2016. REUTERS/Marco Bello

CARACAS (Reuters) – Inflation in Venezuela’s crisis-hit economy was 176 percent in the first half of 2017, the opposition-led congress said on Friday in the absence of official data.

Economic hardship in Venezuela, where there are severe food shortages, is helping fuel opposition protests that have led to at least 90 deaths in the last three months.

Various factors underlay the six-month price rise, including excess money-printing by the central bank to fund campaigns for Maduro’s controversial new congress as well as a recent devaluation of the bolivar, opposition lawmaker Angel Alvarado said.

“These levels of inflation and the acceleration of price increases are not only impoverishing Venezuelans, they’re truly fueling hunger,” said Alvarado, an economist.

June’s inflation was 21.4 percent, he added, presenting the latest opposition-calculated index.

President Nicolas Maduro’s government has not published official data for more than a year.

Government opponents say Maduro and his predecessor, Hugo Chavez, have wrecked a once-prosperous economy with 18 years of state-led socialist policies ranging from nationalizations to currency controls.

The government says it is victim of an “economic war” led by opposition-linked businessmen.

(Writing by Alexandra Ulmer; Editing by Andrew Cawthorne; Editing by Bernard Orr)

Venezuela assembly plan threatens Chavez legacy: prosecutor

A woman reacts at the place where 17-year-old demonstrator Neomar Lander died during riots at a rally against Venezuelan President Nicolas Maduro's government in Caracas, Venezuela, June 8, 2017. The sign reads: "Neomar, entertainer for ever". REUTERS/Ivan Alvarado

By Eyanir Chinea

CARACAS (Reuters) – President Nicolas Maduro’s plan for a new popular congress to rewrite Venezuela’s constitution threatens to destroy the political legacy of former leader Hugo Chavez, the chief state prosecutor said on Thursday.

Maduro, 54, who calls himself the “son” of Chavez and guarantor of his late mentor’s socialist ideals, has cast the constituent assembly plan as the way to restore peace after two months of anti-government unrest that has killed 67 people.

Critics, including some traditional government supporters, have said there is no need to rewrite the constitution reformed by Chavez in 1999, and insist that a referendum should be held to determine if the country wants such an assembly.

“I think with this (assembly) we are destroying President Chavez’s legacy,” Luisa Ortega, the prosecutor who broke with Maduro several weeks ago, said outside the Supreme Court.

Chavez ruled Venezuela from 1999-2013, winning a plethora of elections due to his oil-fueled social welfare policies, charisma, and connection with the poor.

He is still revered by many, though critics argue that his populist policies are the base for the current economic meltdown.

Opposition leaders are calling for a general election to settle Venezuela’s crisis. They have said that the assembly plan is a sham with skewed rules to ensure the socialists remain in power.

“A constituent (assembly) behind the backs of the people cannot be,” Ortega added, also denouncing the “ferocious repression” of anti-Maduro protests.

“Those opposed to the assembly are called traitors, fascists, terrorists – we cannot live in a country like that,” Ortega said.

The pro-government Supreme Court has already shot down one appeal against the constituent process lodged by Ortega, the highest-profile dissenter from within government since the protests started in April.

On Thursday, she asked the court to block the constituent process put in place by Maduro and the national election board.

Opposition protesters have been on the streets near-daily for more than two months demanding elections, foreign humanitarian aid, freedom for hundreds of jailed activists, and autonomy for the opposition-controlled National Assembly.

They call Maduro a dictator who has wrecked the OPEC nation’s economy. The 54-year-old president says they are right-wing “fascists” seeking a coup.

The latest fatality from the unrest was 17-year-old protester Neomar Lander, who died during clashes with security forces in Caracas on Wednesday.

(Additional reporting by Diego Ore, Corina Pons and Andrew Cawthorne; Editing by Toni Reinhold)

Roads blocked round Venezuela as anti-Maduro protests persist

By Andrew Cawthorne

CARACAS (Reuters) – Manning barricades, sitting in deck chairs and sharing food, opposition supporters blocked roads in various parts of Venezuela on Monday to try to keep pressure on socialist President Nicolas Maduro.

Demonstrators have been on the streets daily since early April to demand elections, freedom for jailed activists, foreign humanitarian aid to offset Venezuela’s economic crisis, and autonomy for the opposition-controlled legislature.

Maduro accuses them of seeking a violent coup.

Protesters have used constantly varying tactics. Some rode horses through Caracas on Saturday, women took letters and flowers to police and military posts on Sunday’s Mother’s Day, and hundreds were joining planned daylong sit-ins from 7 a.m. on Monday.

“I’m here for the full 12 hours. And I’ll be back every day there’s a protest, for as long as is necessary,” said human resources worker Anelin Rojas, 30, sitting cross-legged with a novel and earphones in the middle of Caracas’ main highway.

“Unfortunately, we are up against a dictatorship. Nothing is going to change unless we force them,” added Rojas, surrounded by banners saying “Resistance!” and “Maduro, Your Time Is Up!”

Using branches, rocks and garbage, demonstrators blocked the main Francisco Fajardo thoroughfare in Caracas from soon after dawn. Many brought chairs, mats and food to last the day.

There were similar protests in other major cities around the South American nation of 30 million people.

In western Tachira state, some farmers were striking on Monday in solidarity with the protesters. They gave away milk and cheese so it would not go to waste, witnesses said.

The opposition, which commands majority support after years in the shadow of the ruling socialists, is more united than during the last wave of anti-Maduro protests in 2014.

But they have been unable to stop violence in their ranks, with youths hurling stones and petrol bombs, vandalizing property and starting fires when security forces block marches with tear gas, pepper spray and water cannons.

PRESIDENTIAL ELECTION

At least 39 people have died, including protesters, government sympathizers, bystanders, and security forces, during six weeks of protests. Hundreds have also been hurt and arrested.

The current wave of protests, which have attracted hundreds of thousands of demonstrators on some days, has drawn greater support from the poor – who backed late leader Hugo Chavez massively but have soured on his successor Maduro and who have suffered most from four years of recession. But the main protests have still been taking place in middle class areas.

Maduro, 54, who narrowly won election to replace Chavez in 2013, says he is the victim of an international right-wing conspiracy that has already brought down leftist governments in Brazil, Argentina and Peru in recent years.

As international pressure on him grows, the European Union on Monday became the latest to call for elections in its most outspoken statement yet on the Venezuela crisis.

Authorities thwarted an opposition push for a referendum last year and have also delayed state gubernatorial elections. But Maduro vowed at the weekend the next presidential election, due in late 2018, would go ahead.

“We will thrash them!” he predicted, though pollsters widely foresee defeat for the ruling Socialist Party at any open vote.

The government is also setting up a controversial body called a constituent assembly, with authority to rewrite the constitution and shake up public powers.

Maduro says that is needed to bring peace to Venezuela, but foes view it as a cynical tactic to buy time and create a biased body that could perpetuate the socialists’ rule.

(Additional reporting by Anggy Polanco in San Cristobal, Maria Ramirez in Ciudad Bolivar; Robin Emmott in Brussels; Editing by Frances Kerry)