AP, CARACAS: Venezuelan President Hugo Chavez warned he will nationalise the country's banks and largest steel producer in an apparent bid to strong-arm the businesses to contribute more to local industry.
   
Delivered in a wide-ranging speech in which he promised Venezuela was headed for a classless society, Chavez's threat Thursday did not seem to signal an imminent takeover.

But coming alongside recent moves to nationalise telecommunications, electricity companies and the oil sector, the warning was yet another sign the Venezuelan leader is serious about deepening his socialist revolution.

"Private banks have to give priority to financing the industrial sectors of Venezuela at low cost," Chavez said. "If banks don't agree with this, it's better that they go, that they turn over the banks to me, that we nationalise them and get all the banks to work for the development of the country and not to speculate and produce huge profits."

It was unclear if Chavez was referring only to Venezuelan banks including Mercantil Servicios Financieros CA and Banco Provincial SA, or also major international banks with subsidiaries in the country, such as New York-based Citigroup Inc. and Spain's Banco Bilbao Vizcaya Argentaria SA and Banco Santander Central Hispano SA.

Chavez also warned the government could take over steel producer Sidor, which is majority controlled by Luxembourg-based Ternium SA. Ternium's US-traded shares fell $1.05, or 3.9 per cent, to $26.15 Thursday.

 

@ The Bangladesh Journal

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