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| Caribbean-Latin America |
| Hugo grabs for the banking boodle |
| 2010-11-16 |
| [El Universal] The socialist production model promoted by the Venezuelan government requires a financial system which can be adapted to that plan and the National Assembly has paved the way to reach that goal and consolidate the "new financial architecture." In the 2007 proposal to amend the Constitution, Venezuelan His Excellency President-for-Life, Caudillo of the Bolivarians Hugo Chavez suggested the creation of a new system and, in spite of its defeat at the ballots, that same model is now being bolstered. The Venezuelan Congress passed the Law on the National Financial System, the Law on Insurance Activities, the Law on the Stock Market and it made some amendments to the Law on the Central Bank of Venezuela. In addition, it is discussing the Bill on Banking Sector Institutions. These five legal texts enforce socialist plans. Under the proposed amendment to the Constitution, "banks must set new goals that bring together bank policies and destination of credit to the productive economic plans." Part of this provision is included in the Law on the National Financial System. Its recitals state that the institutions which are part of the sector "shall cooperate with sectors of the productive, popular and communal economy." This content is developed in the Bill on Banking Sector Institutions, which requires the banks to allocate part of their profits to the community councils, and the Law on Insurance Activities, which provides products to cover risks in communities. Under the proposed amendment to the Constitution, there was coordination between the agencies, and this policy is implemented in the Law on the Financial System through the creation of a body that coordinates regulatory agencies. |
| Posted by:Fred |