Heidegger

We are getting a rare opportunity now to witness, step by step, how it
begins:

Chavez Threatens to Nationalize Banks
May 3, 4:53 PM (ET)
By JORGE RUEDA

CARACAS, Venezuela (AP) - Venezuelan President Hugo Chavez on Thursday
threatened to nationalize the country’s banks and largest steel producer,
accusing them of unscrupulous practices.

“Private banks have to give priority to financing the industrial sectors of
Venezuela at low cost,” Chavez said. “If banks don’t agree with this, it’s
better that they go, that they turn over the banks to me, that we
nationalize them and get all the banks to work for the development of the
country and not to speculate and produce huge profits.”

It was not clear if Chavez was only referring to Venezuelan banks like
Mercantil Servicios Financieros CA and Banco Provincial SA, or if he was
also aiming the threat at major international banks with subsidiaries in the
country, such as Citigroup Inc. (C) and Spanish banks Banco Bilbao Vizcaya
Argentaria SA (BBV) and Banco Santander Central Hispano SA. (STD)

Chavez also warned the government could take over steel producer Sidor,
which is majority controlled by Luxembourg-based Ternium SA. (TX) Shares of
Ternium fell 3.9 percent to $26.15 in U.S. trading after Chavez’s comments.

Sidor “has created a monopoly” and sold the bulk of its production overseas,
forcing local producers to import tubes and other products from China and
elsewhere, Chavez said.

“If the company Sidor … does not immediately agree to change this process,
they will obligate me to nationalize it,” Chavez said.

“I prefer not to,” Chavez added, as he ordered Mining Minister Jose Khan to
depart immediately for the company’s headquarters and come back with a
recommendation with 24 hours.

“Sidor has to produce and give priority to our national industries … and
at low cost,” he said.

Chavez initiated a nationalization drive in January that is bringing the
country’s largest telephone company CANTV and the electricity sector under
state control. The state oil company also took over the last privately run
oil operations in the country from major international oil companies on
Tuesday.

Chavez, a close ally of Cuban leader Fidel Castro, says the nationalization
of “strategic” companies are part of Venezuela’s transition to a socialist
system.

“I’m not deceiving anyone,” Chavez said. “I’m only governing the country,
and the country has elected me various times … All of those who voted for
me backed socialism, and that is where we are heading.”
 http://apnews.myway.com/article/20070503…

Posted on Thursday, May 3rd, 2007 at 11:45 pm
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