Identifier
Created
Classification
Origin
09CARACAS976
2009-07-28 14:52:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Caracas
Cable title:
CADIVI RELEASES LIST OF COMPANY-SPECIFIC HARD
how-toVZCZCXRO8343 PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHGR RUEHHA RUEHHO RUEHMC RUEHMT RUEHNG RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC DE RUEHCV #0976 2091452 ZNR UUUUU ZZH P 281452Z JUL 09 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC PRIORITY 3460 INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS RHEHNSC/NSC WASHDC RUMIAAA/HQ USSOUTHCOM MIAMI FL RUCPDOC/DEPT OF COMMERCE RUEATRS/DEPT OF TREASURY
UNCLAS CARACAS 000976
SENSITIVE
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR RKING
USDOC FOR 4332 MAC/ITA/WH/JLAO
E.O. 12958: N/A
TAGS: ECON EFIN PGOV PREL VE
SUBJECT: CADIVI RELEASES LIST OF COMPANY-SPECIFIC HARD
CURRENCY APPROVALS
REF: CARACAS 614
UNCLAS CARACAS 000976
SENSITIVE
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR RKING
USDOC FOR 4332 MAC/ITA/WH/JLAO
E.O. 12958: N/A
TAGS: ECON EFIN PGOV PREL VE
SUBJECT: CADIVI RELEASES LIST OF COMPANY-SPECIFIC HARD
CURRENCY APPROVALS
REF: CARACAS 614
1. (U) CADIVI, the GBRV entity which rations hard currency
at the official exchange rate under Venezuela's currency
controls, released on its website a table with
company-specific data on hard currency approvals from 2004
through April 20, 2009. Each company's total is broken down
between imports and all else (e.g., dividends, royalties,
etc.). For example, according to the table, CADIVI approved
during this time period a total of USD 3.3 billion for
General Motors of Venezuela (the second highest total
according to a local analyst's compilation),of which USD 3.2
billion was for imports. The company that received the
highest amount of hard currency approved (USD 4.6 billion)
was Sidor, the steel maker nationalized in 2008. According
to the analyst's compilation, the top 25 largest recipients
also included the Venezuelan subsidiaries of Ford, Cargill,
Chrysler, Goodyear, Pfizer, Procter & Gamble, and Mack, as
well as American Airlines. There are approximately 8600
companies listed in the 86-page table.
2. (SBU) Comment: To our knowledge CADIVI has never before
released company-specific data of this kind, and we are
somewhat puzzled as to why it is doing so now. It is always
possible CADIVI is embracing greater transparency, though
that is not the trend of most GBRV financial institutions.
It is also possible CADIVI and/or the GBRV is preparing the
groundwork for a counterattack against critics, particularly
within the private sector and opposition, who blame CADIVI
for problems in their company, their sector, or the economy
at large (reftel). The data released show subsidiaries of
foreign companies have been the largest recipients of hard
currency approvals, and the GBRV might well go on to argue
these companies have nothing to complain about. End comment.
CAULFIELD
SENSITIVE
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR RKING
USDOC FOR 4332 MAC/ITA/WH/JLAO
E.O. 12958: N/A
TAGS: ECON EFIN PGOV PREL VE
SUBJECT: CADIVI RELEASES LIST OF COMPANY-SPECIFIC HARD
CURRENCY APPROVALS
REF: CARACAS 614
1. (U) CADIVI, the GBRV entity which rations hard currency
at the official exchange rate under Venezuela's currency
controls, released on its website a table with
company-specific data on hard currency approvals from 2004
through April 20, 2009. Each company's total is broken down
between imports and all else (e.g., dividends, royalties,
etc.). For example, according to the table, CADIVI approved
during this time period a total of USD 3.3 billion for
General Motors of Venezuela (the second highest total
according to a local analyst's compilation),of which USD 3.2
billion was for imports. The company that received the
highest amount of hard currency approved (USD 4.6 billion)
was Sidor, the steel maker nationalized in 2008. According
to the analyst's compilation, the top 25 largest recipients
also included the Venezuelan subsidiaries of Ford, Cargill,
Chrysler, Goodyear, Pfizer, Procter & Gamble, and Mack, as
well as American Airlines. There are approximately 8600
companies listed in the 86-page table.
2. (SBU) Comment: To our knowledge CADIVI has never before
released company-specific data of this kind, and we are
somewhat puzzled as to why it is doing so now. It is always
possible CADIVI is embracing greater transparency, though
that is not the trend of most GBRV financial institutions.
It is also possible CADIVI and/or the GBRV is preparing the
groundwork for a counterattack against critics, particularly
within the private sector and opposition, who blame CADIVI
for problems in their company, their sector, or the economy
at large (reftel). The data released show subsidiaries of
foreign companies have been the largest recipients of hard
currency approvals, and the GBRV might well go on to argue
these companies have nothing to complain about. End comment.
CAULFIELD