Possible Restrictions On Profits

In order to pave the way for a state-run set of enterprises, Venezuelan President Hugo Chávez has announced that the government will nationalise various iron and steel firms in the country. Furthermore, the government is thought to be considering restrictions on profit margins on 'primary' consumer goods as a measure to reduce the cost of living in the country. The proposal is currently under review by the finance committee of the National Assembly. Profit margins may be limited to between 3-4%. We expect the government to continue to interfere with the private sector over the coming years, particularly as the

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