From: "Macdonald Stainsby" <[EMAIL PROTECTED]>

Subject: [L-I] Venezuela's Chavez Threatens Banks

December 15, 2001

Venezuela's Chavez Threatens Banks
By THE ASSOCIATED PRESS

CARACAS, Venezuela (AP) -- President Hugo Chavez threatened on Saturday to
nationalize banks that fail to observe legislation requiring them to lend at
least 15 percent of their loan portfolio to small farmers.

``We can nationalize any bank that does not observe the law,'' Chavez said
in a
speech in Venezuela's National Assembly. ``Not only can we nationalize any
bank,
any banker that does not abide by the law could go to jail.''

Last month, Chavez' government used ``fast-track'' legislative powers to
decree
49 laws affecting industries from oil to agriculture.

Under the new legislation, banks must lend at least 15 percent, rather than
the
previous 8 percent, of their portfolios to poor farmers in need of credit.

Another contentious law opens the way for the expropriation of ``idle''
farmlands and the distribution of small plots to farmers.

Chavez made the statements during a ceremony to commemorate the second
anniversary of the approval of the new constitution.

To protest the laws, Fedecameras, the country's leading association of
businesses, brought Venezuela to a virtual halt with a one-day nationwide
strike
earlier this week. It is also challenging the laws in Venezuela's highest
court
and pushing for amendments in the legislature.

Business groups fear the Land Law violates the right to private property and
will scare off investors. Some bankers have said they would rather pay a
fine
for disregarding the new laws than provide more loans.

It was not immediately clear how much banks could be fined for ignoring the
laws.

Chavez, a leftist former paratrooper, claims the package of laws will
consolidate his so-called ``revolution'' aimed at bringing social justice to
Venezuela's poor majority.

-------------------------------------------
Macdonald Stainsby
Rad-Green List: Radical anti-capitalist environmental discussion.
http://lists.econ.utah.edu/mailman/listinfo/rad-green
----
Leninist-International: Building bridges in the tradition of V.I. Lenin.
http://lists.econ.utah.edu/mailman/listinfo/leninist-international
----
In the contradiction lies the hope.
                                     --Bertholt Brecht


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