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Chavez to nationalize Spanish Santander Group bank (Updated II)

by rahul | July 31, 2008 at 12:39 pm

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Updates: On Friday 1 August 2008, the Spanish government expressed it wuould expect a quick arragement is the nationalization deal of Banco de Venezuela.

Caracas, Venezuela, 31 July 2008. This afternoon and during a televised message Venezuelan President Hugo Chavez informed the country of his intention to proceed with the nationalization of Banco de Venezuela which was founded in 1883. The Bank of Venezuela was bought by the Spanish Grupo Santander in 1996.

According to Chavez, Spanish banking Santader Group had decided to sell the Banco de Venezuela and asked the government for the appropriate permits. As the Chavez government announced it would be interested i buying it, the Spanish banking Santader Group stated it was no longer interested in selling. Thus in such circumstances, Chavez decided to nationalize it.

It is expected the nationalization announcement would cause stir at Spain where Chavez has just paid an official visit to mend bilateral relations. The Venezuelan government has accused various Spanish political sectors and media of doing their most to misinform over it democratic credentials and foreign policy objectives.

Last year the Venezuelan president threatened to nationalise all Venezuelan subsidiaries of Spanish banks after Spain's King Juan Carlos told him to "shut up" during a summit last November, although the two have since reconciled. Banco de Venezuela is the South American nation's third largest bank in terms of deposits and the fourth measured by its credit portfolio. It was bought by Santander in 1996. In the past two years Venezuela government has taken over several key part of the nation's economy, including oil projects, telecommunications and steel and cement plants.

Sources: Globovision, YVKE, VTV, El Pais, Unionradio, El Mundo.es, BBC Mundo,

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mpress

at 12:57 on July 31st, 2008

Who is surprised. Chavez uses totalitarian tactics because Fidel taught him well. He is the Saddam of Latin America and will probably meet the same fate..