Korean Job Discussion Forums

[Adventurer]

Page last updated at 13:46 GMT, Thursday, 12 June 2008 14:46 UK
E-mail this to a friend Printable version

Chavez's olive branch for firms

Hugo Chavez is fighting rising inflation in Venezuela's economy
Venezuelan President Hugo Chavez has announced a plan to help the country's businesses as rising inflation threatens the economy.

Under a stimulus package unveiled on Wednesday, Mr Chavez scrapped a tax and eased currency controls that made it harder for Venezuelan firms to operate.

He also announced a $1bn fund to help key industries such as food and oil.

Economic growth in Venezuela has slowed this year as inflation jumped to more than 31% last month.

The tax was stopping the productive process and boosted inflation

President Hugo Chavez

Growth slowed to a four-year low of 4.8% in the first quarter of 2008, a sharp fall from 8.8% the previous year.

Mr Chavez wants to make it easier for Venezuelan companies to operate and has scrapped a 1.5% tax on foreign transactions.

He said: "We will eliminate the tax on foreign transactions. Really the tax was stopping the productive process and boosted inflation."

VENEZUELA'S BUSINESS BOOST

Eliminate foreign transaction tax
Ease currency exchange controls
$1bn fund for food, oil & manufacturing

He has also made it easier for firms to trade in US dollars, companies that import goods worth $50,000 or less will not have to complete complex paper-work or get permission from authorities.

YUGOHUGO