EL UNIVERSAL
VÍCTOR SALMERON

President Hugo Chávez said that once Banco de Venezuela, the Venezuelan unit of Spanish Banco Santander Central Hispano giant banking group, is nationalized, the financial institution would be turned into "an ultramodern entity" that would replicate the model of Brazil federal bank, Caixa Econômica Federal. 

Chávez revealed that he has already held meetings with top officials of the Brazilian financial institution, the largest public bank in Latin America.

Caixa serves 33.6 million people, mainly from poor sectors and lower middle class, and has developed projects to give three million Brazilians access to the banking system. The Brazilian bank manages USD 93 billion, reports earnings, manages public lotteries and encourages investment in municipalities. 

Chávez said he plans to expand Banco de Venezuela's network of offices to all Venezuelan municipalities. "Here in Caicara del Orinoco (a town in Bolívar state, southeast Venezuela) there are only three bank offices. One of them belongs to Banfoandes; the other to Banco Industrial, and a third one of Banco de Guayana. The former two are state banks. There are many municipalities lacking a bank branch. We must follow good examples."

"One of the programs I want to implement following the nationalization of Banco de Venezuela is to municipalize it. I want to establish branches all over the country," Chávez said.

Besides, the Venezuelan ruler added that the takeover of the bank would benefit "not only rich and middle class Venezuelans but also the people in general, even in the most remote and poor areas of the country."

José Grasso Vecchio, a financial analyst, believes that "the concept of a financial institution such as Caixa works successfully in Brazil; but in Venezuela, there is concern about the managerial and professional skills to carry out the project."

In a rally in the city of Ciudad Bolívar, east Venezuela, last Saturday night, Chávez sent a message to the customers of Banco de Venezuela. "Customers must be more confident since their savings are safer than before."

Chávez said: "with the bank in the hands of a revolutionary socialist government, there are more guarantees now than before, as there are more guarantees for workers with the main Venezuelan steel plant (Siderúrgica del Orinoco, Sidor) in hands of the state."

He added that the decision to nationalize the Venezuelan subsidiary of Spain's Santander Central Hispano banking group was favorable for the whole country. "Now the bank will not be owned by foreigners living across the world and doing business throughout the world. Now the owner is the Bolivarian Republic of Venezuela."

Chávez said that Banco de Venezuela would be "a socialist bank" and that after nationalization, earnings would be used for the "socialist social development," which will be stronger.

Translated by Gerardo Cárdenas