The decision to remove Venezuela was based on market consultation conducted by the FTSE Americas Regional Committee. The committee based its decision on Venezuela’s continued breach of FTSE ground rules pertaining to the management of the index as a whole, according to a FTSE news release.
Specifically, the committee found Venezuela in violation of a rule relating to the country inclusion rule concerning exchange controls. “Because foreign exchange is not available to international investors wishing to sell on the Caracas stock exchange, many fund managers have marked the value of Caracas-listed shares held at zero. These exchange controls make Venezuela effectively uninvestable,” said Peter Leahy, Director of Structured Products at State Street Global Advisors and Co-Chairman of the FTSE Americas Regional Committee.
FTSE said at this time, there is no intention of removing any other markets from the FTSE All-World Index. The changes will be effective, Monday June 23, 2003. More information regarding the removal of Venezuela from the FTSE All-World Index can be found at www.ftse.com .