News / Venezuela

Venezuela president reveals plans to boost economy

Thursday, 22 January 2015 7:00 AM [ Last Update: Thursday, 22 January 2015 7:00 AM ]

Venezuelan President Nicolas Maduro delivers a speech in Caracas on January 22, 2015. (AFP photo)

Venezuelan President Nicolas Maduro has unveiled a new round of social plans aimed at pulling the oil-rich South American country out of recession.

In an annual address to the legislature on Wednesday, he said that the government is set to increase wages and pensions by 15 percent, deliver 400,000 new homes for the poor and increase grants for students.

The president also dismissed claims that the country’s national currency, the bolivar, has devalued due to a dramatic plunge in oil prices.

Venezuelan currency will continue to be exchanged at three rates under a new system.

Maduro also accused the opposition groups of sabotaging the economy.

He also said that his administration will continue its economic programs despite a nearly 60 percent fall in oil prices.

Acknowledging the existence of worsening shortages in the country, Maduro said that the economy contracted 2.8 percent in 2014.

The comments came as the International Monetary Fund forecasted that Venezuela's economic growth would contract seven percent this year.

On Tuesday, Maduro said that Venezuela's crude was at USD 38 a barrel, compared with USD 99 in June. He added that the oil prices will not return to USD 100 per barrel.

DB/NN

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