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

A Nostalgic Look Back at Life in Costa Rica

From bankbooks and free bocas to machete-cut grass and Lada Nivas, a longtime resident looks back at the Costa Rica he first encountered and how the country has changed.

Three Missing After Being Swept Away at Tarrazú Waterfall and Guanacaste Beach

Three people remain missing after strong currents swept them away in two separate incidents today, one at a waterfall in the Los Santos region...

Costa Rican Influencer Julián Valverde Released by ICE Without Bond

Costa Rican content creator Julián Valverde was released from U.S. Immigration and Customs Enforcement custody in Florida on Sunday, Sept. 20, after five days...

Apple Brings Tap to Pay on iPhone to Costa Rica

Apple rolls out Tap to Pay on iPhone in Costa Rica. Businesses can now accept in-person contactless payments on an iPhone, with no separate...

Costa Rica Reaffirms Cuba Split After Havana Denies Being Notified

Costa Rica's foreign minister spent the weekend defending a diplomatic split with Cuba that Havana says it was never formally told about, and by...

More Than 50 Earthquakes Shake Area Around Costa Rica’s Irazú Volcano

More than 50 small earthquakes struck the area around Irazú Volcano this morning, but seismologists say the activity points to movement along a shallow...

U.S. Deported More Than 25,000 People Through Secret Third-Country Deals

More than 25,000 people have been deported by the United States to countries with which they have no ties under agreements involving 35 nations and hundreds of millions of dollars, according to an investigation by Forbidden Stories.

Brazil’s João Fonseca Pulls Out of Asian Tennis Swing to Focus on Recovery

Brazilian tennis star João Fonseca has withdrawn from the upcoming Asian swing, including the Japan Open in Tokyo and the Shanghai Masters, as the...

Costa Rica Changes Route 1 Traffic Pattern Near San Ramón

Drivers using Route 1 between the Central Valley and Puntarenas is facing a new traffic pattern today as construction continues around San Ramón. The...
🌴 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