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

Carlos Alcaraz Stunned in Shanghai as Zverev Clinches Year-End No. 1

Carlos Alcaraz’s comeback run hit an unexpected setback Monday, when Belgium’s Zizou Bergs knocked him out of the Shanghai Masters, ending the Spaniard’s chances...

More Than 400 Buildings Sit in the Path of Costa Rica’s Electric Train

Incofer's feasibility study found more than 400 homes, shops and buildings inside the rail right-of-way for the Tibi electric train. The state must also buy 145 private lots by 2028.

Costa Rica’s Trash Problem Begins in Our Own Neighborhoods

I was walking up the street toward my house when I saw a young man coming from the other direction casually toss a bit...

Three Paperwork Problems Led Costa Rica to Deny Beéle Concert Permit

Immigration says a contract filed for the Beéle concert listed a signer who was not in Costa Rica. Ticket refunds start automatically Monday.

Beéle Concert in Costa Rica Canceled Hours Before Show

The concert by Colombian singer Beéle scheduled for tonight in Costa Rica has been canceled less than 24 hours before the show, leaving ticket...

Costa Rica’s Lesser-Known Juan Castro Blanco Park Prepares for Tourists

Construction is underway on new visitor facilities at Juan Castro Blanco National Park, a lesser-known protected area in northern Costa Rica, as officials work...

Costa Rica’s Rebeca Grynspan Leads UN Race but Faces Two Potential Vetoes

Costa Rican diplomat Rebeca Grynspan remains the leading candidate to become the next secretary-general of the United Nations, but a new round of voting...

Costa Rica Through A Canadian’s Eyes: More Than Just Pura Vida

It has been nine years since I made the move from Canada to Costa Rica, and I often find myself asking a simple question:...

Costa Rica Opens Prison Modeled on El Salvador’s CECOT

Costa Rica's new maximum-security prison opens today, but no inmates move in until late October. Here is how it will operate, who goes first and the legal fight over its rules.
Loading…

Latest News from Costa Rica

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