Devaluation likely to hit Spanish bank and telephone carrier in Venezuela
The move made by the Venezuelan Government may lash income of Venezuela-based Spanish companies and undermine the dividends waiting for repatriation
The devaluation announced by the Venezuelan authorities last Friday will have a particularly significant impact on the accounts of Spanish bank BBVA and telephone company Telefónica, whose revenues in Venezuela amount to some 6-8 percent of their total revenues. In the meantime, the impact in other Spanish companies based in Venezuela will be lower, according to estimates issued by some analysts in Madrid.
The new foreign exchange rate will enter into force next February 13, from VEB 4.30 to VEB 6.30 per US dollar.
Brokerage firm Banesto Bolsa has stressed that BBVA yielded eight percent of the net margin in Venezuela in 2012, and its book value in Venezuela amounted to USD 1.03 billion (less than two percent of the total).
Regarding Telefónica, in addition to the impact on income (USD 3.09 billion in the first nine months, that is, 4.95 percent of total income), the telephone carrier holds USD 2.6 billion in cash and dividends that are waiting for repatriation, Banesto Bolsa explained.
Translated by Jhean Cabrera
José Vicente Rangel clearly said: "We are not conducting negotiations threatened with a gun in the head." He warned behind closed doors in the midst of the social upheaval occurred during the oil strike in 2002 and 2003. Dissenting Timoteo Zambrano answered back that no other option was available: "The thing is that otherwise, you do not negotiate."