The withdrawal will wipe out the federal government's balance within the FIEM, leaving the fund with $1.608 billion, of which $208 million is earmarked for state governments and the remainder for state oil company Petroleos de Venezuela SA(E.PVZ), according to the report.
Government officials couldn't be reached for confirmation. The FIEM is a rainy day fund that, in 2000 and 2001, absorbed half of Venezuela's oil revenues above budgeted levels. The account isn't expected to get any deposits until 2004 as a result of a new law.
Government income was severely affected by a two-month general strike against President Hugo Chavez's leadership that began Dec. 2, which all but shut down Venezuela's vital oil industry, among many other sectors. Opposition leaders are demanding Chavez agree to early elections, blaming his left-leaning policies for the country's deepening economic crisis. The economy contracted 8.9% in 2002, amid 17% unemployment and 32% annualized inflation sparked by a 46% devaluation of the bolivar. The currency lost a further 25% this year before currency sales were halted Jan. 21. [End] Chavez has said the problems are due to an "economic coup" led by his opponents. El Universal Website: www.eluniversal.com -By Jehan Senaratna, Dow Jones Newswires; 58212-564-1339; jehan.senaratna@dowjones.com
Costa Rica is evaluating whether to grant Ortega territorial asylum, which would allow him to live in the country, Lizano said. Venezuela would grant safe conduct to Ortega if he is granted territorial asylum, Interior Minister Lucas Rincon said. Chavez said on state television that Ortega's asylum request "demonstrated the criminal character" of the strike leaders. "They are sabotagers and terrorists who greatly harmed the country," he said. At the same time, hundreds of flag-waving supporters gathered around the Costa Rican embassy in eastern Caracas chanting, "Ortega, friend, the people are with you!" ***