Chavez Plots State-Run Bolsa

Venezuela’s government plans to create a state-run stock and bond exchange, according to wire reports citing television remarks from president Hugo Chavez. The public market, which will begin operations in December, would allow state-run companies to sell securities with investments being guaranteed by the state, Chavez reportedly says. Earlier this year, the government closed more than a dozen banks and 40 brokerages that it said committed fraud and set artificial exchange rates. Separately, a new bond issue from PDVSA could be in the works, according to Credit Suisse. “We heard continuous discussion of the possibility of another $1.0bn-$1.5bn of new PDVSA bonds placed with the central bank,” it says.