Venezuela threatens to nationalize banks, steel

Venezuelan President Hugo Chavez on Thursday threatened to nationalize the country’s banks and largest steel producer, accusing them of unscrupulous practices.

“Private banks have to give priority to financing the industrial sectors of Venezuela at low cost,” Chavez said. “If banks don’t agree with this, it’s better that they go, that they turn over the banks to me, that we nationalize them and get all the banks to work for the development of the country and not to speculate and produce huge profits.”

It was not clear whether Chavez was only referring to Venezuelan banks such as Mercantil Servicios Financieros and Banco Provincial or aiming the threat at major international banks with subsidiaries in the country, such as Citigroup Inc. and Spanish banks Banco Bilbao Vizcaya Argentaria and Banco Santander Central Hispano.

Chavez also warned the government could take over steel producer Sidor, which is majority controlled by Luxembourg-based Ternium. Sidor “has created a monopoly” and sold the bulk of its production overseas, forcing local producers to import products, Chavez said.

Chavez initiated a nationalization drive in January that is bringing the country’s largest phone company, CANTV, and the electricity sector under state control. On Tuesday, the state oil firm took over the last private operations in the country from international oil companies.