In what President Hugo Chavez described as a blow for "vampire" capitalism, Venezuela will next month open a state-run stock and bond exchange aimed at financing public companies and wooing middle class voters. The government's official gazette on Monday published the law ordering the creation of the new market, which will be run by the finance ministry.
In recent weeks, Chavez has accelerated his drive to increase the hand of the state in all sectors of the economy including finance, housing and food production. Oil and heavy industry is already largely government run. "The public securities exchange system has been born," Chavez said on his weekly TV show on Sunday in a speech peppered with references to capitalist "vampires" and "vultures." He said it will open in December.
"This is not the capitalist exchange, Dracula, this is the socialist exchange. The state and the republic guarantee your money and it will have a good yield." Chavez already has his eye on 2012 presidential elections, where he will need the support of some middle-class voters as well as his poor base to win another 6-year term.