Planned Debt Issuance Presents Short-Term Upside

The news that Venezuelan President Hugo Chavez is seeking to raise VNF45bn (US$10.5bn) in new debt to finance the ambitious house building pledge underpinning his re-election campaign could - over the short-term at least - present some upside potential for our forecasts. Indeed, despite having repeatedly failed to meet the housing demand in Venezuela for the best part of a decade; a general election in the latter half of 2012 may provide Chavez with sufficient incentive to take measures to inject much-needed capital into the sector.

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