Tag Archives: Venezuela

Crisis-hit Venezuela halts publication of another major indicator

FILE PHOTO: A man walks past empty shelves at a supermarket in Caracas, Venezuela March 9, 2017. REUTERS/Carlos Garcia Rawlins/File Photo

By Girish Gupta

CARACAS (Reuters) – Venezuela has stopped publishing money supply data, depriving the public of the best available tool to ascertain soaring inflation in one of the world’s worst-performing economies.

The country quit issuing inflation data more than a year ago, but annual consumer price rises are widely seen to be in triple digits, driven by an unraveling socialist system in which many people struggle to obtain meals and medicines.

A money supply indicator known as M2 was up by nearly 180 percent in mid-February from a year earlier, according to the central bank before it halted the release of the weekly data without explanation last month.

In contrast, neighboring Colombia’s M2 was up 7 percent in the same period and the United States’ was up 6 percent.

“If they are not publishing, you know it must be skyrocketing,” said Aurelio Concheso, director of the Caracas-based business consultancy Aspen Consulting.

The central bank and ministry of communications did not respond to a request for comment.

An increase in M2, the sum of cash together with checking, savings and other deposits, means more currency is circulating.

That can accelerate inflation when coupled with a decline in the output of goods and services – such as in Venezuela, which is in the fourth year of a recession.

The money supply indicator suddenly stopped appearing on the central bank’s website on Feb. 24.

The government ceased the dissemination of gross domestic product data more than a year ago. Before that, it put an end to the release of balance of payments figures and its consumer product scarcity index.

For a graphic on Venezuela’s money supply, click http://fingfx.thomsonreuters.com/gfx/rngs/VENEZUELA-ECONOMY/010040800HY/index.html

EXPONENTIAL RISE

Venezuela’s money supply, as measured by M2, has risen exponentially since Hugo Chavez, a leftist, came to power in 1999 and is a major factor behind what is thought to be the world’s highest inflation.

While M2 may seem an obscure technical indicator, the figure was routinely published in Venezuelan newspapers.

In the absence of official data — and highlighting Venezuela’s conflict of powers — the opposition-run National Assembly is publishing its own inflation figure, which it said reached 741 percent in the year to February.

Critics accuse the government of suppressing data in order to hide the magnitude of the economic mess and of stoking price rises by reckless money-printing and overspending.

Socialist Nicolas Maduro, elected president after Chavez’s 2013 death, has long blamed Venezuela’s difficulties on an “economic war” being waged on the government by the opposition and U.S. government.

With no money supply figures available, the closest alternative is “excess bank reserves” data. Still published by the central bank, it represents the total funds that banks have available to make commercial loans though is no substitute for M2, say economists.

The last year for which inflation data is available from the central bank is 2015, when consumer prices rose 181 percent.

(Additional reporting by Corina Pons; Editing by Brian Ellsworth and W Simon)

Chilean president says Trump concerned about Venezuelan crisis

Chile's President Michelle Bachelet speaks during a news conference alongside Argentine President Mauricio Macri at the Olivos presidential residence in Buenos Aires, Argentina, December 16, 2016. REUTERS/Marcos Brindicci

SANTIAGO (Reuters) – U.S. President Donald Trump expressed concern about the political and humanitarian situation in Venezuela in a call on Sunday with Chilean President Michelle Bachelet, the Chilean president told reporters on Monday.

Bachelet said she talked with Trump about the actions regional leaders were taking with regard to Venezuela, which has been wracked by an economic crisis in the last three years and is facing external pressure to make political reforms.

“(President Trump) presented to me his worries about the situation in Venezuela,” Bachelet told reporters at the La Moneda presidential palace in Chile’s capital, Santiago.

“I told him about the actions (Chile’s) foreign ministry is carrying out together with other foreign ministries, and we are staying in contact to see how we can help Venezuela have a peaceful exit from its domestic situation.”

Venezuelans are suffering from severe shortages of basic goods, including food.

The government of Nicolas Maduro blames private businesses for sabotaging the economy with price speculation and routinely denounces opposition activists as coup-plotters, intent on bringing down socialism in the country.

Opposition leaders say the Maduro government has undermined democracy by canceling a key referendum and delaying local elections, among other measures.

Last week, Luis Almagro, secretary general of the Organization of American States, said Venezuela should be suspended from the organization if it does not hold general elections as soon as possible.

Relations between Venezuela and the United States have been rocky since former socialist president Hugo Chavez rose to power in 1999. The South American country has repeatedly criticized the United States for interfering in its domestic affairs.

The U.S. blacklisted Venezuela’s vice president as a drug trafficker in February, and Trump later that month called for the release of jailed opposition leader Leopoldo Lopez.

(Reporting by Fabian Cambero and Gram Slattery, Editing by Rosalba O’Brien and Jeffrey Benkoe)

Venezuela arrests brownie and croissant bakers in ‘bread war’

A saleswoman sells bread at a bakery in Caracas, Venezuela March 17, 2017. REUTERS/Marco Bello

CARACAS (Reuters) – Venezuela this week arrested four bakers making illegal brownies and other pastries as President Nicolas Maduro’s socialist government threatens to take over bakeries in Caracas as part of a new “bread war”.

Maduro has sent inspectors and soldiers into more than 700 bakeries around the capital this week to enforce a rule that 90 percent of wheat must be destined to loaves rather than more expensive pastries and cakes.

It was the latest move by the government to combat shortages and long lines for basic products that have characterized Venezuela’s economic crisis over the last three years.

The ruling Socialist Party says pro-opposition businessmen are sabotaging the OPEC nation’s economy by hoarding products and hiking prices. Critics say the government is to blame for persisting with failed polices of price and currency controls.

Breadmakers blame the government for a national shortage of wheat, saying 80 percent of establishments have none left in stock.

During this week’s inspections, two men were arrested as their bakery was using too much wheat in sweet bread, ham-filled croissants and other products, the state Superintendency of Fair Prices said in a statement sent to media on Thursday.

Another two were detained for making brownies with out-of-date wheat, the statement added, saying at least one bakery had been temporarily taken over by authorities for 90 days.

“Those behind the ‘bread war’ are going to pay, and don’t let them say later it is political persecution,” Maduro had warned at the start of the week.

The group representing bakers, Fevipan, has asked for a meeting with Maduro, saying most establishments cannot anyway make ends meet without selling higher-priced products.

(Writing by Andrew Cawthorne; Editing by Randy Fabi)

Short of options, Venezuela opposition stages flash protests

Carlos Paparoni (C, in yellow), deputy of the Venezuelan coalition of opposition parties (MUD), clashes with Venezuelan National Guards during a protest outside the food ministry in Caracas, Venezuela March 8, 2017. REUTERS/Carlos Garcia Rawlins

By Andrew Cawthorne

CARACAS (Reuters) – A dozen activists alight surreptitiously from cars, walk determinedly toward Venezuela’s heavily-guarded Food Ministry, and dump two bags of garbage at its front entrance.

Soldiers quickly form a cordon and a young opposition lawmaker pounds their riot shields with his fists as government supporters appear from nowhere, throwing punches at the protesters.

The activists, who use garbage to symbolize how people are scavenging for food because of Venezuela’s economic crisis, chant “The People Are Hungry!” and “Democracy!” After a few minutes, they are chased back to their cars by a fast-growing crowd of supporters of socialist President Nicolas Maduro.

The mid-morning fracas in a working-class district of Caracas is the latest of near-weekly “surprise” protests by the opposition this year intended to embarrass Maduro, galvanize street action and highlight Venezuela’s litany of problems.

“Three million Venezuelans are eating out of rubbish today,” said the 28-year-old legislator Carlos Paparoni, nursing a few bruises after the Food Ministry protest.

“No one can shut us up. We will fight wherever we have to.”

While the small, flash protests briefly paralyze streets, turn heads and provide colorful photo ops for journalists tipped off in advance, they are little more than a minor irritant to Maduro.

In fact, they have only been on the rise this year because of the failure of traditional mass marches in 2016.

A year of marches, which peaked with a million-person rally in Caracas, did not stop authorities blocking a referendum on Maduro’s rule that could have changed the balance of power in the South American member of OPEC with 30 million people.

Instead, they led to a short-lived Vatican-championed dialogue that helped shore up the unpopular president and divided the opposition Democratic Unity coalition, leaving rank-and-file activists demoralized.

With Maduro’s term due to finish in early 2019, authorities are now delaying local elections and making opposition parties jump through bureaucratic hoops to remain legally registered.

“We’ll have to stop conventional rallies and use the surprise factor to make the government see it must respect the constitution,” said opposition leader Henrique Capriles, whose First Justice party is a main promoter of the flash protests.

‘NO TO DICTATORSHIP!’

After traditional-style marches around the country on Jan. 23 were again blocked by security forces, Capriles debuted the new strategy the next day with a surprise protest that briefly immobilized vehicles on a highway.

Demonstrators held banners demanding “Elections Now!”

Since then, activists coordinating clandestinely and rotating responsibilities, have popped up regularly to stop traffic, chant slogans and demand meetings with officials. One day, they held three simultaneous protests.

Numbers, however, are small, seldom more than a dozen or two. Security forces normally move them on quickly, and pro-Maduro supporters hang around government buildings precisely to display their political zeal in such moments.

“These fascist coup-mongers are seeking violence. They should go to jail!” shouted Jorge Montoya, 48, wearing a “Chavez Lives!” T-shirt in honor of late leader Hugo Chavez outside the Food Ministry where he helped chase off the protesters.

Officials did not respond to requests for interviews on the flash protests. Maduro and other senior government officials routinely denounce opposition activists as coup-plotters, intent on bringing down socialism in Venezuela.

Another opposition party, Popular Will, which has long promoted civil disobedience tactics, is also a main instigator of street activism.

Its members last month painted a mosaic of their jailed leader Leopoldo Lopez on a highway, decked lamp posts with black “No To Dictatorship!” signs overnight, and on Valentine’s Day handed flowers to security personnel.

“They are actions that have to be creative, have high impact for communication, dent the government’s sense of invincibility, transmit a message … and reduce fear,” said Emilio Grateron, Popular Will’s national head of activism.

The party’s more than 150,000 activists take inspiration from successful models of non-violent protest abroad such as those in the 1980s by then-trade union leader Lech Walesa against communism in Poland and opposition in Chile to the military dictatorship of Augusto Pinochet.

Such heady comparisons, though, seem far-fetched in Venezuela right now where not just government officials but even some cynical opposition supporters scoff at the flash protests as ineffectual stunts.

“No one sees these surprise protests,” said Julio Pereira, 25, a student and long-time supporter of opposition marches. “The government laughs at them.”

Even though the opposition coalition proved it had majority support by winning legislative elections at the end of 2015, and despite the disastrous state of Venezuela’s economy, the prospect of political change has dimmed this year.

“Not so long ago, I was ready to march to Miraflores (presidential palace),” said Pereira, now about to join friends who have found work in Argentina. “Now I’m instead heading to the airport to get out. The government is a disaster, the opposition is a disaster, my country is a disaster. I’m gone.”

(Reporting by Andrew Cawthorne; editing by Christian Plumb and Grant McCool)

Venezuela Congress begins measuring inflation amid cenbank silence

People queue to deposit their 100 bolivar notes, near Venezuela's Central Bank in Caracas, Venezuela December 16, 2016. REUTERS/Marco Bello

By Corina Pons and Brian Ellsworth

CARACAS (Reuters) – Venezuela’s opposition-led congress has started publishing the country’s inflation rate based on its own data collection, as the government of President Nicolas Maduro remains silent about the crisis-stricken nation’s soaring consumer prices.

The legislature has enlisted economics students to collect price data in five cities and asked former central bank employees to process it using the central bank’s methodology, said legislator Jose Guerra, an economist and former researcher at the bank.

Their measurements show prices rose 741 percent in the 12 months to February, 20.1 percent last month alone and 42.5 percent in the first two months of 2017.

Venezuela’s most recent official inflation figures, released last year, showed prices rising 180.9 percent in 2015.

“We’re not trying to substitute the central bank. We are filling the vacuum left by the central bank as a result of it not publishing the figures,” Guerra said in an interview.

The central bank did not immediately respond to an email seeking comment.

Venezuela’s economy has been in free fall since the 2014 collapse of oil prices, which left the socialist economic system unable to maintain an elaborate system of subsidies and price controls that functioned during the oil boom years.

Maduro says his government is the victim of an “economic war” led by political adversaries with the help of Washington.

The government has kept quiet about fundamental economic indicators including economic growth and balance of payments amid an increasingly dire panorama of swelling supermarket lines and worsening shortages.

The absence of inflation figures has everyone from workers to business owners unable to make basic economic calculations.

“Workers don’t know what their salary is, companies don’t know what their costs are,” Guerra said. “There’s no way to calculate the real interest rate. There’s no way to calculate the real exchange rate.”

He said the project already has drawn the interest of Wall Street banks, which are closely monitoring the country’s economy on concerns it could default on its high-yielding dollar bonds.

Measuring inflation is unusually complicated in Venezuela, because consumer products as well as hard currency fetch vastly different prices depending on whether or not they are distributed to the socialist economy’s subsidy system.

Consumers can sometimes obtain basic goods at low-cost prices by waiting for hours in supermarket lines but increasingly have to buy such goods from smugglers on informal markets for more than 10 times the officially mandated prices.

(Writing by Brian Ellsworth; Editing by Alexandra Ulmer and Bill Trott)

Venezuela’s epileptic patients struggle with seizures amid drug shortage

Miguel Anton (C) feeds his son Jose Gregorio Anton, 11, a neurological patient being treated with anticonvulsants, at their house in La Guaira, Venezuela February 20, 2017. REUTERS/Carlos Garcia Rawlins

By Andreina Aponte

MAIQUETIA, Venezuela (Reuters) – Venezuelan plumber Marcos Heredia scoured 20 pharmacies in one day but could not find crucial medicines to stop his epileptic 8-year-old from convulsions that caused irreparable brain damage late last year.

The once giggly and alert boy, also called Marcos, could no longer sit on his own and began to shut off from the outside world.

“I called people in the cities of San Cristobal, Valencia, Puerto La Cruz, Barquisimeto, and no one could find the medicine,” Heredia, 43, said in the family’s bare living room in a windy slum overlooking an international airport in the coastal state of Vargas.

“You can’t find the medicines, and the government doesn’t want to accept that.”

Heredia ended up traveling 860 km (540 miles) by bus to the Colombian border to pick up medicine a cousin had bought him in the neighboring country. He was back at work the next day.

Venezuela’s brutal recession is worsening shortages of medicines from painkillers to chemotherapy drugs.

With 85 of every 100 medicines now missing in Venezuela, anti-convulsants are among the toughest drugs to find, Venezuela’s main pharmaceutical association said.

An estimated 2 million to 3 million Venezuelans suffer from epilepsy at some point in their lives, according to Caracas-based support organization LIVECE. Patients have been struggling to find specific anti-convulsive medicines as far back as 2012.

Due to untreated convulsions, progress has evaporated for otherwise functional people and those with severe disabilities who had managed to improve their mobility or speech.

Like Heredia, patients and families try anything they can to get hold of drugs: barter diapers, frantically engage in WhatsApp groups created specifically for pharmaceutical exchanges, use expired medicines or, if they can afford it, ask friends to bring them in from abroad.

But the shortages are so extreme that patients sometimes take medicines ill-suited for their conditions, doctors warn.

Neurologist Beatriz Gonzalez of LIVECE said she was worried about epileptic mothers giving birth to deformed children because they take the wrong medicine, or losing the child because they cannot find the drugs.

‘HEART IN MY MOUTH’

The problem goes much further than just those with epilepsy. Unexpected convulsions can also afflict feverish children, accident victims or people with other neurological conditions.

Two-year-old Carlos Baute unexpectedly started to shake and choke when he had a fever in January. Holding his tongue down with two fingers to keep him from swallowing it, his mother visited multiple underequipped hospitals before one finally treated him.

Baute’s mother said she could not find medication and was worried that her son, an active boy who has recovered and likes to dash around the clinic where he is being treated, may yet suffer another fit.

Leftist President Nicolas Maduro blames the shortages on a right-wing plot to overthrow him, but in a recent speech, he said he had approved “major dollar investments” to boost drug availability, without providing details. Venezuela is set to open three medical labs with Palestine, he added last week.

“(We must) solve this very delicate issue that has been affected by the economic war,” said Maduro.

Venezuela’s Information and Health Ministries, as well as the Social Security Institute, which oversees some hospitals and drug distribution, did not respond to requests for comment.

Compounding medical issues, some families cannot even eat properly.

Leonardo Colmenares, a 6-year-old with epilepsy and a degenerative neurological disease, weighed 10 kg (22 pounds) in mid-2016 but has lost 2 kg in six months as his mother struggles with his recommended diet.

“I sell bracelets and watches, I buy bread and resell it, I dry hair, I do pedicures, I cook, I rent out the washing machine and I iron,” said the single mother, who had to leave her job as a bank analyst to take care of Leonardo.

When Leonardo convulses, she must rush him to a hospital because she has run out of anti-convulsants.

“I can’t just go to a park (with my son) because maybe I’ll suddenly have to rush away,” Torres said, fighting back tears. “I always have my heart in my mouth.”

Click on http://reut.rs/2lp5dQM to see a related photo essay.

(Additional reporting by Alexandra Ulmer and Diego Ore in Caracas; Editing by Alexandra Ulmer, Girish Gupta and Lisa Von Ahn)

Venezuela opposition parties fear election ban as Socialists dig in

opposition supporters in Venezuela

By Brian Ellsworth

CARACAS (Reuters) – Venezuela’s government is pushing forward with measures that could exclude some opposition political parties from future elections, potentially paving the way for the ruling Socialists to remain in power despite widespread anger over the country’s collapsing economy.

The Supreme Court, loyal to socialist president Nicolas Maduro, has ordered the main opposition parties to “renew” themselves through petition drives whose conditions are so strict that party leaders and even an election official described them as impossible to meet.

Socialist Party officials scoff at the complaints. They say anti-Maduro candidates would be able to run under the opposition’s Democratic Unity coalition, which has been exempted from the signature drives, even if the main opposition parties are ultimately barred.

But key socialist officials are also trying to have the coalition banned, accusing it of electoral fraud. Government critics point to this and the “renewal” order as signs the socialists are seeking to effectively run uncontested in gubernatorial elections and the 2018 presidential vote.

Investors holding Venezuela’s high-yielding bonds had broadly expected Maduro to be replaced with a more market-friendly government by 2019.

The prospect of opposition parties being blocked from elections could raise concern in Washington where the Trump administration this week blacklisted Venezuela’s Vice President Tareck El Aissami and called for the release of jailed opposition leader Leopoldo Lopez.

Maduro’s opponents say his strategy is similar to that of Nicaraguan leftist president Daniel Ortega, who cruised to a third consecutive election victory in November after a top court ruling ousted the leader of the main opposition party. That left Ortega running against a candidate widely seen as a shadow ally.

“The regime is preparing Nicaraguan-style elections without political parties and false opposition candidates chosen by the government,” legislator and former Congress president Henry Ramos wrote via Twitter, suggesting the government would seek to have shadow allies run as if they were part of the opposition.

The moves come as Maduro’s approval ratings hover near 20 percent due to anger over chronic food shortages that lead to routine supermarket lootings and force many Venezuelans to skip meals. His government has avoided reform measures economists say are necessary to end the dysfunction, such as lifting corruption-riddled currency controls.

The elections council has ordered parties to collect signatures from 0.5 percent of registered voters on specific weekends.

The opposition estimates parties could in some cases have to mobilize a combined total of as many as 600,000 people in a single weekend and take them to 360 authorized locations, an arrangement they call logistically implausible.

‘YOU HAVE NO PARTY’

Luis Rondon, one of five directors of the National Elections Council who tends to be a lone voice of dissent against its decisions, described the process as blocking the chances for opposition parties to stay on the rolls.

The council did not respond to a request for comment.

There is little question that sidelining the opposition would be the Socialist Party’s easiest way to remain in power.

Socialist Party leaders have sought to delegitimize opposition parties by accusing them of involvement in terrorism. They point to the opposition’s past, which includes a bungled coup attempt in 2002 against late socialist leader Hugo Chavez.

Maduro’s ballot-box weakness was put on display when the Democratic Unity coalition took two thirds of the seats in Congress in 2015, the opposition’s biggest win since Chavez took office in 1999.

Socialist Party legislator Hector Rodriguez described the “renewal” process as a “simple requirement,” insisting that “a political party that does not have the capacity to collect that amount (of signatures) cannot be considered a national party.”

Still, Socialist Party officials have done little to dispel fears they are trying to bar opponents from elections.

Following complaints that gubernatorial elections were being stalled, Socialist Party No. 2 Diosdado Cabello reminded the opposition that they could not take part in any race until they complied with the “renewal” order.

“Who would benefit if we held elections tomorrow?” asked Cabello during a January episode of his television talk show ‘Hitting with the Mallet’, in which he often wields a spiked club. “If you want we could hold elections tomorrow and you wouldn’t participate because you have no party.”

Even without pushing parties aside, the Maduro government has already blocked key opposition figures or laid the groundwork to do so.

Lopez, a former mayor, remains behind bars for leading anti-government protests in 2014 following a trial that one of the state prosecutors involved called a mockery of justice.

And the national comptroller has said he is considering barring state governor and ex-presidential candidate Henrique Capriles from holding office on alleged irregularities in managing public funds.

Pollster Luis Vicente Leon, who is openly critical of the government, said continuing delays to the election for governors is a sign the Socialist Party may do the same for other elections in which it faces long odds.

“Once you seek mechanisms by which you avoid, delay, impede or block an election, why wouldn’t you block the rest?” he said in a recent radio interview.

“It’s not that these elections (for governors) are in jeopardy, it’s that all elections are in jeopardy.”

(Editing by Christian Plumb and Andrew Hay)

Sanctioned for drugs, Venezuela vice-president slams U.S. ‘aggression’

Venezuela Vice President

By Andrew Cawthorne and Alexandra Ulmer

CARACAS (Reuters) – Venezuela’s powerful Vice President Tareck El Aissami on Tuesday called his blacklisting by the United States on drug charges an “imperialist aggression” in the first bilateral flare-up under the administration of U.S. President Donald Trump.

“We shall not be distracted by these miserable provocations,” he added in a series of tweets. “Truth is invincible and we will see this vile aggression dispelled.”

The U.S. Department of Treasury on Monday sanctioned El Aissami and Samark Lopez, whom it identified as his associate, on accusations of masterminding an international network shipping drugs to Mexico and the United States.

Lopez also said the listings appeared politically motivated.

“Mr. Lopez is not a government official and has not engaged in drug trafficking,” he said in a statement on his website describing himself as a “legitimate businessman.”

President Nicolas Maduro’s government has frequently cast U.S. and opposition accusations of drug-trafficking, corruption and human rights abuses as a false pretext to justify meddling in Venezuela and a push to topple him.

Maduro, 54, narrowly won election in 2013 to replace the late Hugo Chavez, but his popularity has plummeted amid an economic crisis in the nation of 30 million people.

Though he frequently lashed out at former U.S. leader Barack Obama, the Venezuelan president has so far refrained from criticizing Trump.

The sanction on El Aissami will dent Maduro’s hopes Trump might avoid confrontation with Venezuela but could also help him by providing a nationalist card to play, said Tulane University academic and Venezuela expert David Smilde.

“This is a tremendous gift to Maduro as it ensures El Aissami’s loyalty. It essentially increases El Aissami’s exit costs and gives him a personal stake in the continuation of ‘Chavismo’,” he said.

“To be clear, El Aissami and others should be held responsible for their actions. However it should be understood this process has pernicious unintended consequences. I think we are effectively witnessing the creation of a rogue state.”

“CRIMINAL” STATE?

El Aissami, 42, whom local media report is of Syrian and Lebanese extraction, grew up poor in the Andean state of Merida and went on to study law and criminology, according to the ruling Socialist Party. He had been both a lawmaker and a state governor before being named vice president last month.

Venezuelan opposition groups have long accused El Aissami of repressing dissent, participating in drug trafficking rings, and supporting Middle Eastern groups such as Hezbollah.

The head of Venezuela’s Democratic Unity opposition coalition, Jesus Torrealba, said on Tuesday that the El Aissami case demonstrated the rotten and “criminal” nature of the state.

Another opposition leader, Henry Ramos, scoffed that Venezuela would no doubt claim drugs had been planted on officials “just like they plant evidence on Venezuelan opponents to make them rot in the regime’s jails.”

Venezuela is holding more than 100 activists in prison, according to local rights groups. The government denies the existence of political prisoners, saying all politicians in jail are there on legitimate charges.

A senior U.S. official said on Monday that El Aissami controlled drug routes by air and sea. The Treasury Department said he oversaw or partially owned narcotics shipments of more than 1,000 kilograms (2,200 pounds)from Venezuela on multiple occasions.

Another U.S. administration official estimated the value of property in Miami linked to El Aissami but now blocked was worth tens of millions of dollars.

The move was a departure from the so-called “soft landing” approach taken by Obama’s White House. At times it had clashed with efforts by the U.S. Justice Department and Drug Enforcement Administration, which worked with informants in Venezuela to nab influential officials for money laundering and drug trafficking.

Since 2015, the Obama administration had sought to use behind-the-scenes diplomacy to ease acrimony with Caracas and the fallout of a string of U.S. drug indictments against Venezuelan officials, such as Interior Minister Nestor Reverol.

“When the right wing attacks us, it shows we are advancing. Nothing and nobody will stop our victorious march to peace,” Reverol tweeted in defense of El Aissami.

(Additional reporting by Diego Ore in Caracas, Lesley Wroughton in Washington; Writing by Andrew Cawthorne; Editing by W Simon; Editing by Lisa Von Ahn)

Venezuelan girl’s diphtheria death highlights country’s health crisis

a mother who lost her child in Venezuela due to disease and health crisis

By Alexandra Ulmer and Maria Ramirez

PARIAGUAN, Venezuela (Reuters) – Eliannys Vivas, 9, started to get a sore throat on a Friday last month in this languid Venezuelan town where papaya trees shade poor cinder-block homes.

Five days later, Eliannys was dead, likely a victim of diphtheria, a serious bacterial infection that is fatal in 5 to 10 percent of cases and particularly lethal for children.

Her death and a wider Venezuelan outbreak of diphtheria, once a major global cause of child death but increasingly rare due to immunizations, shows how vulnerable the country is to health risks amid a major economic crisis that has sparked shortages of basic medicines and vaccines.

Eliannys’ story is also one of misdiagnoses and missed signals worsened by government secrecy around the disease. Her family had never heard of diphtheria and local doctors did not immediately suspect it, despite the infection having affected hundreds of people just a few hours away in Bolivar.

After Eliannys was taken to a local hospital, doctors, thinking the disease was asthma, used a sort of inhaler on her.

But the usually chatty girl – “a little parrot,” in the words of her day-laborer father — kept weakening, so doctors transferred her to a larger government hospital once an ambulance became available hours later.

At El Tigre hospital, all the devices to examine throats had broken three years ago, so no one checked her properly, according to a nursing assistant.

“They said it was asthma, asthma, asthma,” said her mother, Jennifer Vivas. But as Eliannys struggled to speak, she was rushed to a third and then a fourth hospital in neighboring Bolivar state.

There, doctors discovered with horror Eliannys suffered from grossly inflamed throat membranes – the classic symptom of diphtheria.

But even the fourth hospital lacked adequate treatment for the infection, so she received only a half dose of antitoxins and no penicillin at all, according to a medical professional who treated her there.

As Eliannys’ airwaves blocked up, she suffered two successive heart failures and died on Jan. 18.

“If the diphtheria diagnosis had been made earlier and she had gotten antitoxins, she would have had a chance of surviving,” the source who treated her said, asking to remain anonymous because the government has banned health professionals from speaking to the media.

DIPHTHERIA RETURNS

Venezuela controlled diphtheria in the 1990s, but it reappeared in the vast jungle state of Bolivar in mid-2016.

At least two dozen children died last year, doctors say, and cases are now thought to have spread to a half-dozen other states.

Shortages of basic drugs and vaccines, emigration of underpaid doctors, and crumbling infrastructure have made it easier for diseases to spread, medical associations said.

Many poor and middle-class Venezuelans also have weakened immune systems because they are no longer able to eat three meals a day or bathe regularly due to product scarcity, reduced water supply and raging inflation.

Government secrecy has compounded the problem.

“The fact people don’t know (about diphtheria) helps the bacteria spread,” said Caracas-based epidemiologist Julio Castro, who has been tracking the diphtheria outbreak and who showed photos sent to him of patients with thick white membranes coating their throat.

The unpopular leftist government of President Nicolas Maduro said in October there were no proven cases of diphtheria and admonished those seeking to spread “panic.”

It has since informed the World Health Organization of 20 confirmed diphtheria cases and five deaths, and emphasized there is a major vaccination drive under way, but has yet to provide a full national picture of the disease’s effects amid a generalized clampdown on data.

The Information and Health Ministries, as well as the Venezuelan Social Security Institute, which is in charge of some drug distribution and hospitals, did not respond to multiple requests for comment about Eliannys’ case and diphtheria more generally.

The only other country in the region with a significant number of confirmed diphtheria cases last year was Haiti with 33, the WHO said in December.

MORE ILLNESS AHEAD?

Doctors think diphtheria first spread from the rough-and-tumble illegal gold mines in Bolivar state, which is attracting poor Venezuelans as the minimum monthly wage languishes around $30.

After Eliannys’ family was forced to start skipping dinner in December, her father, Tulio Medina, decided to work in Bolivar’s yucca and yams plantation where he made more money but might have brought the infection home.

The disease has already spread to capital Caracas, where doctors say a 32-year-old mother died last year, and could yet affect more states.

With the Venezuelan pharmaceutical association estimating that roughly 85 percent of drugs are unavailable at any given time and in light of the short supply of vaccines, doctors are bracing for further increases in illnesses like malaria, pneumonia and tuberculosis.

Venezuela’s rate of immunization with the pentavalent vaccine, which protects children from five major infections including diphtheria, had slipped to 78 percent between January and November 2016, according to Health Ministry figures leaked to former Health Minister José Felix Oletta and seen by Reuters.

“At this rate, we’re going to see more illnesses, more deaths, more doctors leaving the country,” said pediatrician Hugo Lezama, the head of Bolivar’s doctors association, who himself earns only a handful of dollars a month.

“Those of us who stay are going hysterical trying to perform miracles so our patients don’t die.”

(Writing by Alexandra Ulmer; Editing by Christian Plumb and Matthew Lewis)

Peru to give visas to thousands of crisis-weary Venezuelans

Peru's president in press conference saying venezuelans will get visas

LIMA (Reuters) – Peru has created a temporary visa that will allow thousands of Venezuelans to work and study in the country, part of a migratory policy that aims to “build bridges” and “not walls,” the Andean nation’s interior ministry said.

President Pedro Pablo Kuczynski’s government issued 20 temporary visas to Venezuelan migrants in Peru this week. Kuczysnki, a centrist, has expressed concern about shortages of food and medicine in Venezuela, mired in a deep economic crisis.

Some 6,000 Venezuelans are expected to receive the permit, which will allow them to study, work and receive health services in Peru for a year, the interior ministry said late on Thursday.

Peru has enjoyed nearly two decades of uninterrupted economic growth and single-digit inflation, a sharp contrast to socialist-led Venezuela, where the ranks of the poor have swollen in recent years.

“We want to offer a different message on migration than what’s offered in other places. We want to build bridges that unite us and not walls to separate us,” Interior Minister Carlos Basombrio said in a statement.

The comment appeared to be a thinly veiled shot at the new U.S. government, which is traditionally an ally of Peru.

U.S. President Donald Trump has imposed a temporary entry ban on refugees and citizens from seven Muslim-majority countries, and insisted that Mexico will pay for his proposed wall along the U.S.-Mexican border to curb illegal immigration.

Kuczynski, a former Wall Street banker and free-trade advocate who took office last year, has previously compared Trump’s proposed border wall to the Berlin Wall, and said he would oppose it in the United Nations.

Kuczynski and Colombian President Juan Manuel Santos said last week that they would stand with Mexico and seek to strengthen regional trade, in the wake of rising tensions between Mexican President Enrique Pena Nieto and Trump.

(Reporting by Mitra Taj; Editing by Paul Simao)