tag:blogger.com,1999:blog-4080946.post6504689886086644422..comments2024-03-18T19:50:24.376+01:00Comments on Venezuela News And Views: The devaluation is retroactive: the great chavista robberyDanielhttp://www.blogger.com/profile/12128609182544333477noreply@blogger.comBlogger22125tag:blogger.com,1999:blog-4080946.post-13845085411571041452013-03-03T05:53:28.251+01:002013-03-03T05:53:28.251+01:00If more business owners/managers thought the way I...If more business owners/managers thought the way I do maybe there would be less chavista workers, less indignados, less wall street assaulter.Danielhttps://www.blogger.com/profile/12128609182544333477noreply@blogger.comtag:blogger.com,1999:blog-4080946.post-36664465770109775062013-03-03T05:24:09.836+01:002013-03-03T05:24:09.836+01:00I know it sucks, but it´s that or being exposed to...I know it sucks, but it´s that or being exposed to considerable risks. <br /><br />I'm amazed companies abroad still provide credit to clients in Venezuela. Besides, trade finance for Venezuelan companies literally doesn't exist so that makes it even harder to seek credit from providers. <br /><br />As I'm sure you imagine, it's very likely your provider -who is already charging you interests- will become fed up with the delays in payments and ask you in future orders to wire the money before dispatching the merchandise. Alexnoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-37343739786350344102013-03-02T23:20:51.110+01:002013-03-02T23:20:51.110+01:00Spoken like a banker or stock trader. And why am I...Spoken like a banker or stock trader. And why am I supposed to do with my workers if I have nothing to do for them? Fire them? And what about my customers? "Sorry, I have no stuff for you, too bad your animals are going to die". And what about the competition, should I just leave them alone in the market?<br /><br />I am sorry, but I am no reaganite.Danielhttps://www.blogger.com/profile/12128609182544333477noreply@blogger.comtag:blogger.com,1999:blog-4080946.post-54726507973964532672013-03-02T17:58:26.550+01:002013-03-02T17:58:26.550+01:00Daneiel, not that you were doing anything wrong bu...Daneiel, not that you were doing anything wrong but the problem is your company's balance sheet was dollar-short at the moment of devaluation. You are indebted in foreign currency in a very risky FX environment. In financial terms, you were completeley unhedged or uninsured against devauation. <br /><br />To avoid this risk, many companies in Venezuela are not acquiring debt in US dollars. They just import the merchandise when Cadivi pays out the dollars. And in the other hand, many foreign providers are not issuing credit to Venezuelan clients. <br /><br />I know this is terrible for the continuity of yours or any business -it's one of the key reasons why there's so much shortage of goods- but it is at least a safe move and one which will prevent important balance sheet losses like the one you will have to account for. Alexnoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-89536019603674810562013-02-28T19:35:50.804+01:002013-02-28T19:35:50.804+01:00Hi Daniel, this is unbelievable but I too work in ...Hi Daniel, this is unbelievable but I too work in agribusiness and have tried to grow sales in Venezuela for almost a decade (having lived there for many years pre Chavez.) It puts many many companies in distinct danger but one thing gives me hope: your last sentence <i>"Because I suspect that inside chavismo there are a few that understand the gravity of the situation and yet do nothing..."</i>, this is true, but there are more than a few, there must be hundreds or thousands that are in business with families/friends/partners/contacts. This is economic craziness and has no logic at all.Span Owshttps://www.blogger.com/profile/10144861546996033462noreply@blogger.comtag:blogger.com,1999:blog-4080946.post-89571456565327648082013-02-28T15:13:09.377+01:002013-02-28T15:13:09.377+01:00Would they be exempt from the labor law?Would they be exempt from the labor law?jsbhttps://www.blogger.com/profile/16526596147319229399noreply@blogger.comtag:blogger.com,1999:blog-4080946.post-25213936727013970042013-02-28T14:24:27.031+01:002013-02-28T14:24:27.031+01:00Right.....Right.....Danielhttps://www.blogger.com/profile/12128609182544333477noreply@blogger.comtag:blogger.com,1999:blog-4080946.post-15469109536108728372013-02-28T08:33:26.175+01:002013-02-28T08:33:26.175+01:00"belly" of the beast."belly" of the beast.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-83674208148941726672013-02-28T08:11:58.798+01:002013-02-28T08:11:58.798+01:00That's probably the best possible outcome, sim...That's probably the best possible outcome, simply let Venezuela be bought up and run by Brazil and China while one of Chavez's successors continues running the dog and pony show. At least Venezuela would then be constrained by more levelheaded people.NorskeDivnoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-78919007962463250532013-02-28T07:08:23.738+01:002013-02-28T07:08:23.738+01:00CNN is reporting that...
http://www.cnnchile.com...CNN is reporting that... <br /><br />http://www.cnnchile.com/noticia/2013/02/27/ex-embajador-de-panama-en-la-oea-hugo-chavez-esta-muerto#.US6j6iZ-QfI.twitterAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-60192539363253091802013-02-28T07:08:02.646+01:002013-02-28T07:08:02.646+01:00That they devalue the money only on the supply sid...That they devalue the money only on the supply side is insane. Such a devaluation is more than the profit margin of most businesses and unless sale prices go up or the government provides subsidies impossible. If they have some great 5 year Marxist plan or something besides spending non existant oil revenues, I fail to see it. <br />The only thing I see is a crash and the other Mercorsur countries buying up Venezuelan businesses and making the government abide by the treaty. Very soon, if your company is a Brazilian company, the rules are very different. I think.<br />RogerAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-35649891087908721502013-02-28T06:01:30.415+01:002013-02-28T06:01:30.415+01:00Looks to me like an excellent way of getting rid o...Looks to me like an excellent way of getting rid of privately-owned means or production. From "rojo rojito" to "rojo rojón".<br /><br />Which brings to my mind the song in Jacques Offenbach's "La Périchole", "il grandira car il est espagnol". And indeed, wee Rojito has now grown into big Rojón.Jacquesnoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-70904006713312882462013-02-28T05:00:45.670+01:002013-02-28T05:00:45.670+01:00Well, this is a ground zero blog, of someone that ...Well, this is a ground zero blog, of someone that tries to make a living in the middle of the beast.Danielhttps://www.blogger.com/profile/12128609182544333477noreply@blogger.comtag:blogger.com,1999:blog-4080946.post-17829722626731135742013-02-28T02:52:55.712+01:002013-02-28T02:52:55.712+01:00How long can they keep his body on ice?How long can they keep his body on ice?GeronLhttps://www.blogger.com/profile/13145189615256636055noreply@blogger.comtag:blogger.com,1999:blog-4080946.post-83405998140882017742013-02-28T02:02:45.961+01:002013-02-28T02:02:45.961+01:00I am simply stunned at what was written above. My...I am simply stunned at what was written above. My God, has it gone this far?Dr. Faustusnoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-57494520511842561342013-02-28T00:59:54.691+01:002013-02-28T00:59:54.691+01:00Daniel,
Now, April 2012 is an old CADIVI process....Daniel,<br /><br />Now, April 2012 is an old CADIVI process. But, hadn't they specified that processes were within within X number of months (I think 6) would liquidate at 4.3?ECGnoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-9379033700809610012013-02-28T00:27:15.230+01:002013-02-28T00:27:15.230+01:00This must've been a tough post to write.
You...This must've been a tough post to write. <br /><br />Your situation will certainly not be unique. Many companies will be hit hard. Small-medium sized importers above all. <br /><br />Many business that provide goods to PDVSA and other state companies will also get hit hard. State owned companies take a looong time to pay. Even if suppliers "speculated", it is unlikely that could have anticipated the 2.2x increase in x/r.<br /><br />I think you are right. We are at the beginning of what will become a significant number of bankruptcies.<br /><br />Take care.ECGnoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-57193300202159591192013-02-27T23:50:45.511+01:002013-02-27T23:50:45.511+01:00Daniel, the only reason I referred to this was bec...Daniel, the only reason I referred to this was because the site was used to defraud people. The rate they quote is higher than the other 2 sites that I indicated.Island Canucknoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-5227808373477060582013-02-27T23:26:12.736+01:002013-02-27T23:26:12.736+01:00I know nothing of lechuga verde except to check ou...I know nothing of lechuga verde except to check out the rate on occasion. Do you mean to tell us their info is not true?Danielhttps://www.blogger.com/profile/12128609182544333477noreply@blogger.comtag:blogger.com,1999:blog-4080946.post-57816484694792712942013-02-27T23:08:13.252+01:002013-02-27T23:08:13.252+01:00Daniel,
You used Lechugaverde.com as a reference t...Daniel,<br />You used Lechugaverde.com as a reference to today's rate.<br />You may not be aware that the owners of this website have defrauded hundreds of people by offering to change $$ at Bs.13 during the final quarter of 2012 & then not giving them the $$.<br /><br />You can see more info here:<br />http://www.facebook.com/pages/Lechuga-Verde-Estafa-Cuidado/425179714218167<br /><br />For future reference perhaps dollartoday.com or dolarparaleloeconomiavenezuela.blogspot.com/ would be better sites to use although I know nothing about the people behind those sites.<br /><br />Your case & that of many others is just the tip of the iceberg of what is happening in Venezuela today.<br /><br />Hopefully you will find some help in overcoming this.Island Canucknoreply@blogger.comtag:blogger.com,1999:blog-4080946.post-86376056936069540822013-02-27T21:53:44.812+01:002013-02-27T21:53:44.812+01:00Hmmm...too bad this 'brain-dead' governmen...Hmmm...too bad this 'brain-dead' government can't be unplugged also! What to make of this tweet? MM<br /><br />Guillermo A. Cochez@willycochez<br /><br />El Pres.Chavez ha muerto hace 4 días. Estuvo con muerte cerebral desde 30 0 31 de diciembre. Sus hijos habrían decidido desconectarlo.<br />MMhttps://www.blogger.com/profile/17858169312396849147noreply@blogger.comtag:blogger.com,1999:blog-4080946.post-56410403852351262672013-02-27T21:41:09.461+01:002013-02-27T21:41:09.461+01:00Just One more step in the Zimbabwization of Venezu...Just One more step in the Zimbabwization of Venezuela. As you can see its not just the president that is brain dead, the whole government is as well...<br />Anonymousnoreply@blogger.com