Maduro and Venezuelan Industry in Talks to Prevent Output Crash
Maduro and Foes Work Together to Avert Venezuelan Virus Disaster
(Bloomberg) -- Venezuelan business leaders and Nicolas Maduro’s government are putting some of their differences aside as they discuss how to prevent catastrophic shortages as the coronavirus pandemic brings daily life to a halt.
In meetings at the presidential palace and the finance ministry on Sunday, Maduro’s representatives asked a group of senior business people with help keeping production going during the crisis. In return, they requested measures including delayed payment of income tax, value-added tax and customs fees. In some cases, they are also seeking help paying workers’ salaries, according to three people who participated in the talks.
The government held further talks with other representatives from manufacturing and service companies during the week, the people said.
Maduro imposed a nationwide shelter-in-place order on Monday after coronavirus cases nearly doubled to 36. That threatens to extinguish the recent modest revival in business activity caused by unofficial dollarization and the relaxation of controls.
The new controls are already wreaking havoc on supplies of basic goods. The military set ups checkpoints to prevent the spread of the virus, and have often denied passage trucks carrying food and other essentials, despite the government’s promise to let them through.
The economy is likely to contract 19% this year, according to an estimate by Francisco Rodriguez, a Venezuelan economist. Before the pandemic and this month’s oil price crash, Rodriguez had forecast a 14.3% contraction.
“We’ve received extraordinary policy proposals from different sectors, economic and commercial,” Vice President Delcy Rodriguez said during televised remarks on Wednesday evening. “They are being addressed and considered by the economic team to bring as special considerations to President Nicolas Maduro.”
Venezuela’s Information Ministry didn’t respond to emails seeking comment.
©2020 Bloomberg L.P.