Saturday , April 17 2021

AN proposes an economic plan to deal with hyperinflationary crisis

G. Urdaneta / Press AN

This Thursday, January 31, we learned all the measures framed in the economic program proposed by the National Assembly (AN) for the halting of hyperinflation and improvement in the quality of life of Venezuelans.

The proposal is formulated by experts in economics and deputies of the government body attending premises such as the reduction of the tax sale, avoid the issuance of inorganic money by the Central Bank of Venezuela (BCV), the refinancing of external debt and the autonomy of the BCV.

The deputy of AN, Ángel Alvarado said that The measures do not conceive a time of 10 to 15 years, but an immediate and rapid recovery of Venezuelan consumption capacity.

– Productive reactivation and exchange stabilization –

As the first objective to stop the hyperinflationary levels, it will be achieved through the exchange rate stabilization.

"There will be free convertibility of the currency. What we will do when reaching the Government is to raise the control of change, that each Venezuelan can buy the dollars that he wants and whenever he wants and that it is not a crime, but it is fundamental for that to recover the # 39; foreign exchange income "Alvarado said.

He also said that it is very important to recover the flow of foreign currency in Venezuela and international reserves, therefore it needs the expansion of oil production.

"To lift the change control you must start with an expansion of the oil market so that the currency revenues begin"The deputy insisted.

You are developing a plan for fiscal expansion with access to extraordinary international financing that increases production, imports and consumption to streamline the process.

"We propose a fiscal expansion plan with international financing. We will not reduce spending, we will not live in austerity, let's go to a program of expansion to reactivate the Venezuelan economy"Alvarado insisted.

For its part, the congressman, José Guerra, said that To alleviate hyperinflation must recover the autonomy of the BCV and thus avoid the issuance of inorganic money, that is, the one that does not have any financial support.

"Our approach is not to end the aid, because there is a structural poverty that we have to deal with. But we have to complete the dependency circle of the State through the # 39 ; a subsidy that enhances national production, "said Deputy Juan Andrés Mejías.

– Oil and hydrocarbon theme –

Within the Country Plan, the recovery of the Venezuelan Petroleum Industry (PDVSA), with the productive activation of crude oil, is planned, guaranteeing the normal flow of gasoline and establishing the bases to carry investments.

The deputy for the Zulia state, Elías Matta assured that the private company was a fundamental factor for the development of the country.

"We are going to preserve the ownership of deposits, of hydrocarbons, but we are going to create mixed companies, as the Constitution allows, to come to invest and promote this country, because PDVSA competes with these other companies and produces oil, (…) PDVSA will continue to be of the nation and of all the Venezuelans, "he clarified before the comments on the intention to privatize oil.

Economist José Toro Hardy said that the first thing to define is how much money can be attracted to the recovery of the oil industry, It is investing at least 25 to 30 billion dollars between investment and expenses per year, making it possible to reach about 3 thousand barrels a day in the next 5 years.

"In 7 years, with investments of this nature, we could recover the oil production that we had 20 years ago. We are talking about substantial capital. We must be competitive, we can recover the Venezuelan oil industry."

For his part, lawyer Yon Goicochea invited workers dismissed from the oil industry to return to the country to recover the company. "Welcome all the Venezuelan talent for the recovery of all the wealth of the country."

He indicated that there are important decisions to take on the boards of directors of Pdvsa, Citgo and the 42 mixed companies, who have expressed their readiness to work with this new administration.

"This is a system to bring investments, so that the world can come, to enter from China Russia, India United States and all the commercial partners of Venezuela. Welcome to democracy and we are open to work with you This will be the best country in the world thanks to you ", Said Goicochea

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