Private sector presents proposals
on letters of credit to BCV chief
By Aaron W. Finkel
Daily Journal Staff
The prospects for a solution
to the private sector's un-
recognized letters of credit
problem received a shot in the
arm Thursday when the
country's business leaders
presented two proposals to
·central Bank President
Pedro Tinoco.
After presenting the plan
to Tinoco private· sector
leaders were hopeful a quick
solution could be reached
Tinoco understands · the
prívate sector's problem and
"we got a magnificent recep-
tion" to the proposal, said
National Industrial Council
(Conindustria) President
Ernesto Navarro Ruíz.
Navarro said Tinoco; who
along with Planning Minister
Miguel Rodríguez left Thurs-
day night for New York to
continue · debt negotiations,
plans to set up a commission
immediately to study the
prívate sector proposal.
The plan, which offers a
solution to the problem of the
·exchange-rate differential of
outstanding promissory notes
issued to importers by the
Central Bank as well as losses
incurred through letters of
credit signed at the old
Bs.14.50 preferential ex-
change rate, was presented
to Tinoco by representatives
of all the major private sector
business organizations.
Edgard Romero Nava
sident of the National Trade
and Services Council (Con-
secomercio), said it is impor•
tant to emphasize that the
proposed solutions are the
same for all importers. The
plan was put forth by Con•
secomercio and Conindustria
to benefit everyone, whether
members of the Chambers or
not, he said. "W e hope that
the success of the plan will be
total and we should be op-
timistic that all involved are
interested in finding a solu-
tion beneficia} for thé
country," Romero Nava
added.
Accompanying Romero
Nava in presenting the
prívate sector plan to Tinoco
were Eddo Polesel and Jorge
Chapellin Bello, president
and first vice president, re-
spectively, of the Federation
of Chambers of Commerce
(Fedecamaras) and Jorge
Serrano, president of the
Venezuelan Construction
Chamber.
In addition to Tinoco
,Freddy Rojas and Fernando
Lauria, representatives of
the Central Bank's direc-
torate for the prívate sector,
also received the document.
The text of the document
reads as follows:
"In accordance with the
contents of Exchange
Agreement No. 1 of March
13, 1989, the prívate business
sectors of production trade
and services direct to you
concrete proposals that will
permit you to lessen the pro-
blem of the unrecognized ob-
ligations contracted by the
government through the
Central Bank with com-
mercial banks and_importers.
"The specific proposals in
question are:_
"1 The acceptance by the
Central Bank that the ex-
cbange-rate losses of im~
pórters be paid in thirty six
(36) equal and consecutive
monthly payments, for pend-
ing obligations corresponding
to national imports dating
from June 1988 to March 13,
1989.
"2 - The establishment of a
conversion mechanism that
guarantees the immediate ac•
ceptance by commercial
banks of promissory notes-
issued by the Central Bank at
100 percent of their
equivalent in bolivars on the
date the note was signed." .
The proposal was signed by.
Navarro Ruiz and Romero
Nava.