MercoPress. South Atlantic News Agency

Payments to Chilean businesses in Venezuela delayed

Mounting sourness in relations between Chilea and Venezuela’s Chavez

Venezuelan President Hugo Chávez has rescheduled his visit to Chile yet again, amidst growing tensions related to his country’s failure to make timely payments to 52 Chilean businesses – a sum amounting to more than 80 million US dollars.

Venezuelan Foreign Minister Nicolás Maduro said the postponement was made to avoid two presidential trips to Chile within less than a month.

President Chávez’s trip was originally scheduled for May 16 and subsequently deferred to June 15. His newly confirmed visit is set to coincide with the upcoming July 6 Summit of the Union of South American Nations (UNASUR), apparently in Quito, Ecuador.

But Chilean government sources suggest the postponement reflects widespread concern about Chávez’s restrictions on the foreign currency supply.

Venezuela’s Foreign Exchange Management Committee (CADIVI) – the entity responsible for allocating dollars between importers and exporters - has been strapped for cash because of low oil prices (94% of Venezuela’s income is from oil). As a result, CADIVIA has delayed paying outstanding debt to several South American countries, including Chile.

Chile’s Chamber of Deputies last week approved a bill to “defend Chilean companies which have not received suitable return on investment from the Venezuelan government.”

The bill, which was proposed by former undersecretary Felipe Harboe, reflects the escalation of the controversy over delayed payment owed to the businesses.

Chile’s unhappiness was further aggravated weeks ago after Venezuela ordered work to stop at Vencerámica, a business owned by Chile’s Industrial Ceramics (CISA). Chilean companies deemed Chávez’s actions a form of harassment.

In addition to delayed payment issues, government sources said other problems may have induced Chavez to postpone his visit to Chile, including an unresolved cooperative agreement between Chile’s National Oil Company (ENAP) and Petroleum of Venezuela (PDVSA) to exploit an oil field in the Orinoco Belt region.

By Antonia Wynne-Hughes - Santiago Times