Chávez threatens to expropriate Spanish bank

Venezuelan President Hugo Chávez threatened to expropriate a Spanish-owned bank on Wednesday, arguing that its managers have refused to grant loans to cash-strapped Venezuelans seeking to purchase homes amid a nationwide housing deficit.

During a televised speech, Chávez accused the president of Banco Provincial, Pedro Rodriguez Serrano, of refusing to offer loans.

The Venezuelan president raised the possibility of seizing control of the bank.

Banco Provincial belongs to Spanish banks Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA.

In a statement released following Chávez's speech, Banco Provincial denied the bank has turned its back on clients seeking loans.

Last year, the bank granted loans to 3,256 families seeking to buy homes, financed the construction of 31 residential complexes and cooperated with the state-run National Housing Bank, approving over 1,600 requests for housing-related loans, it said.

"We reiterate our commitment to stay in the country and provide support for the progress of Venezuelan society," the statement added.

Hours later, Rodriguez Serrano met with government officials to discuss complaints from some of Banco Provincial's clients who have complained of delays in the construction of apartments that were financed by the bank.

"We will have the problem solved," Rodriguez said.

Chávez has repeatedly warned he is willing to nationalise any bank that refuses to finance housing projects promoted by his government.

The president's warnings directed at private banks, have increased in recent months as his government struggles with a housing shortage that has been exacerbated by floods and mudslides that left thousands of Venezuelans homeless last year.

Chávez nationalised banks and brokerage firms from 2009 through 2010, bringing 30 percent of the banking sector under state control.

His government acquired Banco de Venezuela, the country's fourth-largest bank, in 2009 for just over US$1 billion.

During his speech, Chávez also called Attorney General Luisa Ortega Diaz and asked her to investigate complaints involving Banco Provincial.

- AP