As part of the turn of the economic policy to relax controls, the Venezuelan leader said on May 11 that between 5 and 10% of the shares of state industries such as telephone companies, mixed oil companies, among others, would be opened to national and foreign investors.
The Bank of Venezuela, which was nationalized by the government in 2009 and sanctioned by the US in 2019, said in a statement that will start a public offering of 5 to 10% of its share capital.
The financial institution added, according to the note released on its Twitter account, that the bank is “taking the first step among public companies to offer the possibility of participation to citizens and private, national and international economic actors in the Stock Market”.
The bank, with some 15 million customers, It did not specify when the offer begins and the procedures for the acquisition of the shares.
The entity “must present a schedule detailing the dates and steps that they are going to comply with,” said Gustavo Pulido, president of the Caracas Stock Exchange, who added that the announcement it is a sign that the economy “is becoming freer”.
In 2021 Maduro began to reverse the socialist economic model of his predecessor, Hugo Chávez, by cede the administration of some 13 state-owned food companies to third parties in exchange for payments and thus lower public spending.
In 2007, Chávez initiated a wave of nationalizations, supported by high oil revenues, of companies in sectors considered “strategic” such as food, banking, industry, oil, electricity, construction and communications. But under state control, these industries reduced their production levels due to disinvestment, corruption and lack of inputs.
The State’s takeover of electricity and telephone companies also had a severe impact on the local stock market, because part of the shares of these companies were traded on the market.
Source: Ambito
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