Finance Minister, Ali Rodriguez Araque admits that he expects inflation to reach around 27% by the end of the year. One of the factors contributing to the high level of inflation, the Minister states, is food. According to the national price index (IPC), food represents around 30% of factors contributing to high inflation rate. However, the Minister does stress that inter-month inflation rate increases have been diminishing. Another problem, the Finance Minister adds, is the fact that historically the capacity of purchase has surpassed national production since 1934 when there was a strong currency revaluation that had a strong impact on food production.
The external public debt is expected to increase 9.4%, while internal debt is down 40.30%, which, the Minister announces, brings the increase down to 0.42%. Relating public debt to the gross domestic product (GDP), Rodriguez Araque argues, means it is reducing significantly ... "the relation between the two has been diminishing from 47.6% in 2003 to 19.3% in 2007."
In other economic news, the Finance Minister says slight increases have been registered in the oil and manufacturing sectors. The latter is above 4% with the tendency of new increases boosted by new initiatives, such as a fund to finance new companies and expand existing ones presented last Tuesday by the Planning Minister.
In the agricultural sector, Rodriguez Araque points out, there are now 2.5 million hectares under production bringing increases in certain products, thanks to the government's agrarian reform. Although domestic agricultural production does not satisfy demand, the Minister announces that the government has covered demand for rice till the end of the year, along with white and yellow maize. The government is continuing to import fertilized eggs for chicken production and is setting up policies to boost production and supply to meet requirements.
President Chavez states that Argentina and Venezuela are growing close together in setting up national development projects. Chavez made the statement during the signing of contracts with Argentinean companies. The President recalls that links of strategic operations started under the presidency of Nestor Kirchner and a number of mechanisms have been set up to free the economies of both countries from neoliberal policies of the International Monetary Fund and the World Bank. Among the agreements signed yesterday are: to set up three oil pipeline recovery factories in Cabimas (Zulia), a factory of medium- powered motors in Tinaquillo (Cojedes), three cereal, vegetable and oil transformation plants in Mene Grande (Zulia), La Fria (Tachira) and Bobare (Lara), and four factories in Zulia, Monagas and Barinas to build structures for buildings .
Several military officers have been sentenced to prison for irregularities in the administration of funds for the construction of the Ezequiel Zamora Sugar Agri-Industrial Complex (Caaez) situated in Barinas. Army Captain Franklin Jose Castillo, and Major Orlando Herrera Sierralta received sentences of seven years and seven months prison, while civilians, Juan Carlos Herrera Sierralta and Roberto Valecillos Jara received a prison sentences of one-year nine months. Two others were freed of charges after being accused of facilitating the scam. The investigation started in 2004 after the above attempted to cash a check for Bs. F 220,000 bolivares, along with other checks. In 2006, the Attorney General's Office presented charges against those sentenced. In the case of General Delfin Gomez Parra accused of the same charges, it has been learned that the court in Barinas will proceed with charges.
Patrick J. O'Donoghuepatrick.vheadline@gmail.com
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