Venezuelan govt declares state of economic emergency

The Venezuelan government declared a state of economic emergency on Friday, to last 60 days, in order to lead a "transformation" of the country's beleaguered economy.

The news was published in the government's Official Gazette, saying "an economic emergency has been declared nationwide...for 60 days."

According to Luis Salas, the Minister of Economy, the actions taken under this state of emergency will serve to "protect the people from the economic war and the precipitous drop in oil prices."

This decree allows the executive branch to take on "exceptional powers" to guarantee the population will fully access goods and services.

First of all, President Nicolas Maduro can now directly access special resources within this year's budget to guarantee social investments and assign resources to public works.

The document stated that these funds would be used "to optimize...sectors such as health, education, food and housing, through social programs."

The government will also roll out special measures to reduce tax evasion and ease the process of assigning public contracts.

Furthermore, regulations for imports of goods into Venezuela will be eased up while ports and airports will be able to temporarily dispense with certain legal norms to rapidly move merchandise around the country.

Certain public and private companies may also be required "to increase their production or ensure the supply of food and essential goods to determined distribution centers, to guarantee the basic needs of Venezuelans will be met."

Finally, measures could be adopted to stimulate foreign investment toward key sectors of the economy as well as to increase opportunities for new avenues of exports, in order to generate jobs.

"The President (Maduro) may take certain social, economic or political steps which he deems convenient...in order to resolve the extraordinary situation, which led to this decree," read the report.

The decree, declaring the state of emergency, will be presented to the National Assembly for its discussion and approval within the next eight days. The Supreme Court of Justice will also be asked to rule on its constitutional legality.

"This decree will last for 60 days, starting with its publication in the Official Gazette. It can be extended for another 60 days by following the established constitutional protocol," the article specified. Endit