Venezuela Names Finance Minister

Venezuelan President Nicolas Maduro has named Nelson Merentes as finance minister, in a series of cabinet moves following his recent election. Merentes, who has held the position before under Hugo Chavez, has been central bank president since April 2009. Barclays points out that during Merentes’ previous run as finance minister, in 2004-2007, he held Venezuelan 5-year credit default swaps at an average of 230bp. Levels are now at 780bp, the bank says. Barclays adds that it sees better relationships with the private sector and international markets ahead under Merentes. “Nonetheless, he will have a bigger challenge today than he had five years ago, given the increase in the size of the state and the number of the public enterprises after the expropriation policy that President Chavez started in 2007,†Barclays says. Merentes was also finance minister in 2001-2002.