Embattled Maduro rebuffs debt default advocate

Venezuelan president Nicolas Maduro late yesterday replaced controversial economy minister Luis Salas, who during his brief tenure supported a default on overseas debt and a tightening of government controls on the moribund oil-based economy.

Salas was replaced by Miguel Perez Abad, former industry and trade minister.

Salas, whose official title was vice president of the productive economy, had faced off in cabinet meetings with more pragmatic energy minister and state-owned PdV chief executive Eulogio Del Pino, who espouses an effort to refinance Venezuela´s debt, local officials told Argus .

Salas departed for personal reasons, according to the president´s office and the former minister´s Twitter account.

The IMF forecasts that the Venezuelan economy will contract by 8pc in 2016, with more than 700pc inflation.

Maduro, the hand-picked successor of influential late president Hugo Chavez, said he will announce measures today to confront the country´s "economic emergency".

Among possible steps is an increase in the retail price of gasoline, which now costs the equivalent of pennies per gallon.

Some members of the ruling PSUV party are openly saying Maduro´s resignation is necessary to address the crisis, which is characterized by acute shortages of food and medicine, extensive rationing of electricity and water supply, and rampant crime.

The shake-up in the key economic post follows word that Venezuela joined Russia, Saudi Arabia and Qatar in an agreement reached in Doha to freeze production at January levels, but only if other producers sign on.

Caracas has been lobbying Opec and non-Opec oil producers since last year to take coordinated action to resuscitate prices.

Send comments to feedback@argusmedia.com

Request more information about Argus' energy and commodity news, data and analysis services.

Related News