VIO News Blog

April 3, 2009

Chavez Calls for Elimination of International Monetary Fund

Late Thursday, President Chavez criticized the G-20’s approach to dealing with the global financial meltdown, stating that “it’s impossible that capitalism can regulate the monster that is the world financial system.” He called for the elimination of the International Monetary Fund and attacked the US and Britain for having promoted the financial model that led to the crisis.

Venezuelan authorities arrested Raul Baduel, a former Venezuelan defense minister on corruption charges, Reuters reports. Baduel has said that he is being persecuted politically, as he was once a close ally of Chavez and then became a vocal opponent in 2007. Prosecutors have accused Baduel of illicit enrichment, stating that during his time as minister $14.4 million went missing from the budget of the Armed Forces.

Iran and Venezuela agreed on Thursday to further strengthen ties, according to AFP. The Iranian President Mahmoud Ahmadinejad stated that “a ten-year plan for the two countries’ ties as well as a plan to combat the global crisis will be drawn up” during President Chavez’s visit. The launch of a joint Iranian-Venezuelan development fund is scheduled to take place today.

A Dow Jones article asserts that a dip in Venezuela’s dollar reserves from $29.7 billion in February to $28.6 billion in March, represents a “weaker protection as it faces financial pressures triggered by the collapse in the price of oil” It should be noted that, aside from its significant Central Bank reserves, Venezuela still has billions of dollars of reserves in separate state funds which it can draw from if the price of oil remains low.

Finally, during a trip to China and Japan this week, Chavez said he will seek investment agreements to finance oil projects, Bloomberg reports.

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