The socialist revolution heralded by President Hugo Chávez, in addition to increasing public expenditure and overpowering state management represents an enormous risk for investors, said Wednesday German DZ Bank in a special report on the outlook of Venezuelan Eurobonds.

 "We recommend at this moment not to bind to Venezuelan Eurobonds and wait for the evolution in upcoming days. The risks for a placement with losses are simply very high," added DZ Bank, a subsidiary of German cooperative group Raiffesen in the report accessed by AFP.

The bank told customers that Chávez' political agenda includes "more power for the Executive, removal of autonomy from the Central Bank, continued nationalization of major companies and a strong influence on press reports."