Do More With Reuters
Partner Services

UPDATE 2-Venezuela sees zero growth in 2009, eyes new bonds

Thu Oct 8, 2009 10:53pm IST
 
Email | Print | | Single Page
[-] Text [+]

(Recasts to add ministers' comments)

CARACAS, Oct 8 (Reuters) - Venezuela's top economic officials forecast on Thursday around zero percent growth for 2009 and said the government will issue more bonds this year following this week's sale of $5 billion in dollar-denominated debt.

"We are going to close 2009 resisting the contraction ... we could be close to zero," Central Bank President Nelson Merentes told reporters. Venezuela's economy contracted 1 percent in the first half of this year, as compared with the same period of 2008.

Finance Minister Ali Rodriguez promised new bond issues after this week's "highly successful" placement.

"There will be new issues," he said. "Conditions and amounts - those are being analysed."

State oil company PDVSA is expected to issue the next bond, which officials have said should strengthen the local bolivar currency in the black market, known locally as the "parallel market.".

"The objective of these placements is not primarily to impact the so-called parallel dollar, but if it has a favorable effect for Venezuelans, so much the better," Rodriguez said.

Local media were awaiting Rodriguez and other officials to use the news conference to unveil long-flagged economic measures, aimed at spurring growth, curbing inflation and strengthening Venezuela's currency in the black market.

But officials said the measures would be unveiled gradually in coming days instead.  Continued...

Dubai Debt Fears

Villas are seen on the The Palm, Jumeirah, with Atlantis, The Palm, under construction on the breakwater (crescent), May 3, 2008.  REUTERS/Jumana El Heloueh

Banks outside the Gulf played down their exposure to Dubai debt, after fears the emirate could default and even derail world economic recovery prompted a sell-off in global markets.  Full Article | Slideshow 

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India.  Full Coverage 

People stroll outside the Taj Mahal hotel ahead of the first anniversary of the militant attacks in Mumbai, November 24, 2009.  REUTERS/Punit Paranjpe
Investors worry about another attack

The risk of militants striking again worries investors who fear that a second attack similar to last year's Mumbai raids could shake the economy.  Full Article | Full Coverage 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

road to Copenhagen

BLOGS

Photo
Calculated Move

Reliance aims big with $12 bln bid for LyondellBasell.  Blog 

SHOWCASE

Capital Raising
Capital Raising

Analysis - China banks' rush for billions could trip markets.  Full Article 

 
Photo
Bonus Payout

"Bonus" has become a dirty word on Wall Street.  Full Article 

 
Bubble trouble?
Bubble trouble?

With the BSE Sensex at around 17,000 points, are the Indian equity markets looking at a possible bubble?   Commentary 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Recovery Path
Recovery Path

Indian techie logging out of downturn gloom.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
Risky Proposal
Risky Proposal

Rupert Murdoch courts trouble if he blocks Google on news.  Full Article