While the Chavez administration has made steadfast moves to impose regulations aimed at promoting social development, it has also limited the involvement of the private sector by restricting its ability to compete with the public sector. In doing so, the Chavez administration has prompted a substantial reduction of private sector investments in the economy as a whole, in which the financial sector has not been an exception.
Venezuela can be a difficult country to navigate, both from the
perspective of the investor and in terms of assessing the legal market.
The country's economy has been on a downward trend for several years
now, especially in the private sector, but its relatively rich petroleum
resources continue to prop up what many believe is an unsustainable
national business model....
CONTEXT AND TRENDS
Beyond a shadow of a doubt, the most important news in Venezuela this year has been the country's upcoming presidential election to be held in October. Amid swirling rumours concerning current president Hugo Chávez's health, there is a sense that this election may be the country's opportunity to get out from what many lawyers feel is a desperate political and economic situation....