Despite the endless claims by Maduro and his merry men that the new-and-improved SICAD II anti-hyperinflation FX allocation system is working well, it seems it is anything but…
- *VENEZUELA'S EMPRESAS POLAR HALTS PASTA PRODUCTION ON FX SHORTAGE
The firm, which produces multiple pasta products, has been forced to 'suspend' operations due to a lack of raw materials (wheat) because it has no foreign currency to use for settlement. Polar says it is working with authorities to find a solution.
As Bloomberg reports,
Venezuela’s Empresas Polar has temporarily halted pasta production at its plant in Maracaibo because of delays in obtaining foreign currency from Cencoex to import wheat, the company said today in an e-mailed statement.
Operations at the plant, which makes the Primor and Gran Senora brands of pasta, stopped on April 27 after inventory that had been loaned from other companies ran out
Polar says its working with government to find solutions to import wheat
And the full statement from Empresas Polar:
Polar Foods plant in Maracaibo Commercial, which produces the brand pasta Primor and Great Lady , was forced to temporarily suspend its operations due to the delay in the settlement of foreign currency by Cencoex (formerly Cadivi) for the purchase of wheat durum, imported raw material required for the manufacture of pasta.
Operations were halted on Sunday April 27, after wheat inventories were obtained through loans from other companies were sold.
As this is a case of force majeure attributable to the company, the procedure for waiver of the employment relationship with the plant workers agreed, as stated in Article 72 of the Labor Law, the Workers and Workers.
The situation is known to the national authorities, who have held numerous communications and meetings, which were alerted in a timely and responsible manner on the risks of delayed settlement currency for the payment of debt suppliers and their effects on the production of an item that is part of the staple diet of Venezuelans.
Polar Enterprises continues to work with the authorities in the search for solutions to obtain in a timely manner, the raw material to restart production as soon as possible Pasta of Primor and Great Lady.
So no toilet paper and now no pasta… how's that whole socialism thing working out? We await Maduro to proclaim them a national treasure and allocate funds accordingly – lik ethe oil companies – or… call them speculators for not having enough dollars and throw the executives in jail.
via Zero Hedge http://ift.tt/1nEBulr Tyler Durden