Chavez Says He Could Call for Vote on Using Part of Central Bank

[cal04]

Venezuela's Chavez Says He Could Call for Vote on Using Part of Central Bank Reserves
Venezuelan President Hugo Chavez said Saturday he could decide to call a referendum on whether the country should be able to use part of its international exchange reserves for projects to help the poor. Chavez, who has repeatedly clashed with the Central Bank on the issue, said the country now has about US$28 billion in reserves, but that US$20 billion would be more than sufficient. He said the other funds could be used for credit for poor farmers and other projects.

"If we need to go to a national referendum, I'm willing to call for a national referendum so that this issue is cleared up by the Venezuelan people," Chavez said during a televised address. He said he thought it "absurd" that Venezuela should be keeping so much money in foreign banks when the needs at home are so great. Despite the country's oil wealth, a majority of Venezuelans live in poverty. "We have an excess of US$8 billion in the international reserves," Chavez said. Chavez has asked lawmakers and ministers to impose a variable limit on the central bank's foreign exchange holdings at anywhere between $18 billion and $20 billion. Central Bank authorities could not immediately be reached for comment.

Chavez said he has been meeting with government ministers and central bank representatives in recent days to discuss the matter, but that so far no agreement has been reached. "But since I'm the head of state, I'm thinking about what it is that will have to be done," he said. Chavez has long railed against the Central Bank for following "evil neoliberal" ideas and for a "misunderstood" sense of autonomy. The president has increased social spending in recent years, while Venezuela's budget has been boosted by record-high oil prices.

Some bank officials and independent economists have warned Chavez that Central Bank reserves should not be spent because they back the value of the Venezuelan currency, the bolivar. Pro-Chavez lawmakers, however, are already working on a bill that would allow the government to use part of the reserves held by the Central Bank. Lawmakers expect to approve the law sometime in June.

http://ap.tbo.com/ap/breaking/MGB2EUHIQ8E.html

[Zorra]

1. Bankers to Chavez: "YOU WHAT? Give bank money to the POOR?

Are you totally insane?"

"Chavez has long railed against the Central Bank for following "evil neoliberal" ideas and for a "misunderstood" sense of autonomy. The president has increased social spending in recent years, while Venezuela's budget has been boosted by record-high oil prices."

Heh.

[bennywhale]

2. This upstart needs sorting out

with wacky and evil ideas like redistributing wealth to poverty stricken peasents. What a bastard