No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessRare good news in Venezuela: beer is back

Rare good news in Venezuela: beer is back

CARACAS, Venezuela — Venezuelans struggling through an economic crisis got a rare bit of good news Thursday when the country’s largest brewery announced it had obtained a loan to resume production.

Polar breweries, maker of the country’s best-known beer brands, shut down production at its four plants in April, blaming a barley shortage. It said it was unable to import the key ingredient because it could not access dollars under socialist President Nicolás Maduro’s tight currency controls.

But with bars and liquor stores running dry, Polar said it had reached a deal for a $35-million loan from Spanish bank BBVA, putting up its shares in an investment fund as collateral.

The cash will enable the company to buy barley, hops and steel sheets for cans — enough to resume production next month and get through the rest of 2016, it said.

Some 10,000 workers at Polar’s four breweries had been out of work since they suspended production.

The brewery is part of Venezuela’s largest corporation, Empresas Polar, whose chief executive, Lorenzo Mendoza, has repeatedly clashed with Maduro as the economy has veered into a deep recession. Maduro accuses the billionaire businessman of sabotaging the economy by slowing production, which the leftist leader blames for severe shortages of food and basic goods.

However, “Empresas Polar is showing its commitment to Venezuela by its actions,” Mendoza said in a statement.

Maduro declared a state of emergency last month to counter what he calls a U.S.-backed “economic war” on Venezuela, threatening to arrest the owners of businesses that halt production.

Polar, the largest food producer in Venezuela, makes a vast range of products, including snacks, condiments, ice cream, soda and the corn flour used in arepas, the national dish.

Although Venezuela holds the world’s largest oil reserves, the sharp fall in global crude prices over the past two years has exacerbated the decline of its socialist economic model. With its main source of foreign currency collapsing, the cash-strapped government is unable to meet businesses’ demand for the dollars they need to buy goods and materials abroad.

The import-dependent economy is set to contract 8 percent this year, with inflation of 700 percent, the International Monetary Fund forecasts.

Trending Now

U.S. Citizen Found Dead in Guanacaste as OIJ Investigates

The Judicial Investigation Agency is treating the death of a 75-year-old U.S. citizen found in Cabo Velas, Santa Cruz, as an apparent homicide possibly linked to a robbery at the property.

Costa Rica Approves Sharp Drop in Super Gasoline and Diesel Prices

Drivers in Costa Rica will soon pay substantially less for super gasoline and diesel after regulators approved fuel-price reductions of up to ₡79 per...

Costa Rica Orders AyA to Compensate Customers Over Excess Water Charges

An audit put improper water, sewer and hydrant charges at roughly ₡65.4 billion and gave AyA and Aresep until June 2027 to define how customers will be paid back.

Dollar Stuck Near ₡450 as Costa Rica Keeps Policy Rate

The Banco Central de Costa Rica set its reference exchange rate on Wednesday at ₡449.80 for the purchase of United States dollars and ₡455.01...

Costa Rica Reaches the Heart of the Romería on the Feast of La Negrita

Today is the day the walking stops. August 2 is the feast of the Virgen de los Ángeles, the small dark stone image Costa...

Costa Rica Builds One of Central America’s Longest Four-Lane Bridges

Construction is continuing on a 308-meter (1,010-foot) bridge that Costa Rican officials say will become one of the longest four-lane bridges in Central America....

Costa Rica’s Rebeca Grynspan Leads in Race to Head United Nations

Costa Rican diplomat Rebeca Grynspan emerged as the early frontrunner to become the next leader of the United Nations after receiving the strongest support...

Guatemala’s Fuego Volcano Eruption Forces 1,700 Evacuations

A powerful eruption of Guatemala’s Fuego Volcano has forced authorities to evacuate at least 1,700 residents from areas near the crater and declare the...

Costa Rica Protest to Defend Judiciary Amid Government Clash

Demonstrators will gather in San José and other parts of Costa Rica as tensions rise over judicial appointments, criminal complaints and government budget cuts.
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel