Chavez relaxes controls on Venezuelan business

Por Venezuela Real - 12 de Junio, 2008, 18:17, Categoría: Prensa Internacional

The Associated Press
Miami Herald
June 12, 2008

CARACAS, Venezuela --  President Hugo Chavez is loosening economic controls on businesses to boost growth in the face of soaring inflation.

Chavez is eliminating a 1.5 percent tax on all financial transactions made by companies.

The socialist president is also easing strict currency exchange controls for importers. He says pending requests for $50,000 or less will be expedited.

A $1 billion fund will be created to encourage joint public-private sector projects in areas including food and manufacturing.

Chavez said in a speech Wednesday that he doesn't intend to cut back government spending to try to reduce inflation. Inflation reached 31.4 percent in May according to Caracas' benchmark price index.
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