VENEZUELA: President Hugo Chavez threatens head of Banco Provincial with takeover on live television

Record ID: 560661

  • Title: VENEZUELA: President Hugo Chavez threatens head of Banco Provincial with takeover on live television
  • Date: 27th January 2011
  • Summary: CARACAS, VENEZUELA (JANUARY 26, 2011) (REUTERS) VARIOUS OF A BRANCH OF BANCO PROVINCIAL
  • Embargoed: 11th February 2011 12:00
  • Keywords:
  • Location: Venezuela, Bolivarian Republic of
  • Country: Venezuela
  • Topics: Finance,Domestic Politics
  • Reuters ID: LVA45VUZQTNVJ81C091IMJ89MHZY
  • Story Text: President Chavez calls head of Banco Provincial on live television, warning him to be careful what he says because the state could seize the bank immediately.
    Venezuela's President Hugo Chavez threatened Spanish bank BBVA on Wednesday (January 26), calling a local bank official on live television and threatening that if the bank did not serve mortgage seekers better, he would nationalise it.
    The socialist president has frequently threatened to take over any banks that stand in the way of financing for much needed home building in the country, and has singled out BBVA'S Banco Provincial unit in the past.
    Chavez demanded that Provincial head Pedro Rodriguez be called on live television.
    "Call the president of Banco Provincial for me immediately. I want to talk to him," said Chavez.
    According to Caracas, would-be homeowners have complained about that Provincial, Venezuela's fourth-largest bank, has not serviced them well.
    "Mr President of the Banco Provincial, Rodriguez, this is President Chavez, as you already know. I am here on a national channel, in a meeting on a national channel, and I am going to repeat to you, with complete respect, Rodriguez, what I have already said publicly. If the Banco Provincial, which you preside over in Venezuela, is not disposed to obey the laws, the presidential degrees, start to surrender the bank to me. I am going to pay you the cost of the bank. Do you hear?" Chavez continued.
    Since coming to power in 1999, Chavez's government has nationalised large swathes of the economy in the name of "21st century socialism".
    Chavez, who got increasingly irate during the conversation, warned Rodriguez that he could take action immediately.
    "Ok, but be careful how you are replying to me because you are saying to me that the bank is not for sale but I know that I can expropriate it, immediately, if I want, in the interest of the nation. Be careful what you say to me," said Chavez.
    Venezuela's public sector now controls about a third of the banking system, and the government has passed laws obliging private institutions to release more funds to promote home building to try to address a national shortage.
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