With an extensive background in Venezuelan banking and finance, Julio M. Herrera Velutini leads a Puerto Rico-headquartered financial entity governed by U.S. banking regulations. Internationally focused, Julio M. Herrera Velutini maintains a strong interest in financial developments throughout Latin America. A recent article by the director of the International Monetary Fund’s Western Hemisphere Department drew attention to global financial market and economic trends that present significant opportunities for Latin America. With commodity prices strengthening, countries such as Brazil, Ecuador, and Argentina are finally emerging from recession. One outcome in 2017 was that region-wide growth exceeded projections and ended at 1.3 percent for the year. According to the IMF forecast, export-driven growth should continue to accelerate throughout 2018, with many countries gaining room for monetary-easing policies. With the economic strength of Central America, Mexico, and much of the Caribbean tied closely to the United States, analysts are closely watching Wall Street and policy movements in Washington, D.C. One major question is whether Venezuela can turn the corner and once again leverage the power of its commodity resources toward sustained growth.
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Julio M. Herrera Velutini is a well-established financial executive who has extensive experience in Venezuelan banking and heads a Puerto Rico-based financial operation. At the core of Julio M. Herrera Velutini’s value proposition is banking that rests on a robust mobile platform and incorporates a full range of investment strategies. He is knowledgeable about the ins and outs of emerging market investments, which provide exceptional growth potential. A recent Forbes article brought attention to the continuing attractiveness of emerging markets, as political and economic reforms lead to a more stable outlook. In particular, traditional risk-associated issues such as low inflation-adjusted interest rates and current account deficits have markedly improved. While bond and equity valuations have increased following an overall strong 2017 performance, they still present attractive price points compared with developed markets and historical trends. India, Brazil, and Russia are areas of particular emerging market interest, with many companies expected to exert more focus on cost controls in ways that improve earnings, profits, and corporate dividends. As chairman of the board of a bank in Puerto Rico, Venezuelan-born financial executive Julio M. Herrera Velutini directs operations with an international focus. Over the past decade, Julio M. Herrera Velutini’s bank has partnered with a major global charitable foundation to sponsor microlending programs in Costa Rica. Microlending has proven to be an effective and popular way for a number of financial institutions to assist communities in Central America. Experts have pointed out that microlending can play a significant role in improving life for some of the more than 800 million people living in extreme poverty worldwide. A study examining 106 developing countries where microlending is available has shown that if the practice is expanded by just 10 percent per recipient, more than 10 million people could be lifted out of poverty. Costa Ricans who have benefited from the growing array of microlending programs include farmers, who use the funds to increase and improve their crops, and women entrepreneurs, who are often among those least likely to obtain traditional loans. With a family involved in banking in Venezuela for more than a century, Julio M. Herrera Velutini serves as chairman of the board of a digitally focused banking institution in Puerto Rico. Part of Julio Herrera Velutini’s mission in his current role is to aid small businesses in Venezuela and beyond. Running a small business in Venezuela has become increasingly difficult in recent years, with some experts suggesting that running a business is more challenging in Venezuela than in Syria. The massive 700 percent inflation rate, along with food shortages during the recession, pose major challenges to local businesses. Some small business owners struggle with armed gangs demanding a “tax” in certain neighborhoods, while other businesses resort to smuggling materials across the border. Additionally, Venezuela relies largely on the oil industry, which has been steadily shrinking and is projected to keep doing so. Many businesses have left the country, but some remain rooted in their homeland, hoping to help support the struggling economy. Some entrepreneurs in Venezuela consider their work an act of political resistance in a time of governmental uncertainty. Recognized as a banking industry leader in South America, Julio M. Herrera Velutini belongs to a family with more than 120 years of history in Venezuela. Julio Herrera Velutini has also conducted extensive banking-industry work in Brazil, where all financial systems and capital markets are regulated by the National Monetary Council, the Brazilian Securities and Exchanges Commission, and the Central Bank of Brazil.
The National Monetary Council, consisting of officials that include the finance minister and the planning and budget ministers, develops credit and monetary policies for financial and capital markets. The National Monetary Council also handles areas such as payment for credit transactions, operating limits for financial institutions, and the availability of credit. Much like its American counterpart, the Brazilian Securities and Exchange Commission oversees the financial activities of many different entities, ranging from publicly traded companies and exchange markets to commodities and futures markets. Finally, the Central Bank of Brazil is responsible for the execution of the policies established by the National Monetary Council. A longtime banking executive based in Caracas, Julio M. Herrera Velutini carries on a 120-year family tradition of banking in Venezuela. Julio Herrera Velutini also played a central role in the advancement of the banking industry in Brazil, which has enjoyed considerable economic prosperity since the early 2000s. Over the past five years, however, GDP growth has slowed significantly in Brazil, reaching only 0.1 percent in 2014.
To revitalize the nation’s economic growth and combat current imbalances in the macroeconomic system, the Brazilian government has set surplus targets of 1.2 percent and 2 percent in 2015 and 2016, respectively. Authorities hope the surplus will offset the country’s primary deficit of 0.6 percent and overall GDP deficit of 6.7 percent in 2014. To realize its surplus targets, the Brazilian government has begun cutting discretionary expenditures and reducing entitlements. Authorities also have decreased treasury support for the electricity and public banking sectors in an attempt to shrink the country’s fiscal deficit. An entrepreneur in the banking industry, Julio M. Herrera Velutini stands out as the chairman of a prominent international bank. Also the founder of one of Venezuela's most prominent financial organizations, Julio Herrera Velutini emphasizes banking and lending standards as crucial elements necessary to stabilize national economies.
According to economic forecasters, Latin America continues on a path of slowing growth in 2014. Although the region's economy reported flat growth throughout 2013, early reports in 2014 suggested that capital influx to the region would lead to an economic pickup. Estimates in August 2013 suggested a growth of 1.6 percent this year, but September adjustments reduced this rate to 1.3 percent. Experts note that if this adjusted estimate remains accurate, the Latin American economy will grow at its slowest pace since 2009. However, current forecasts suggest that cash flow may resume in 2015, which would likely prompt an increase in growth. Current predictions suggest a 2.5 to 2.9 percent growth in 2015 and a 3.5 percent growth in 2015. |
AuthorMr. Velutini has experience with both established banks and young banks. S Archives
December 2017
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