Chavez Says He Was Treated for Cancer

By REUTERS

Published: June 30, 2011 at 10:09 PM ET

CARACAS (Reuters) - Venezuelan President Hugo Chavez said on Thursday he had undergone a successful operation in Cuba to extract cancerous cells and was on the road to full recovery.

Chavez, in a televised speech, said the medical process was "slow and careful" and he was on the road to "full recovery".

It was the first address by the 56-year-old socialist leader since he underwent surgery in Havana on June 10, triggering widespread speculation he might be seriously ill.

Chavez said he was determined to "overcome" the battle for his health and ended his speech with the revolutionary slogan "Until victory forever."

Fans and critics alike had been poring over the latest video of Chavez for clues to his health after the scrapping of a regional summit he had been due to host kept the guessing game going.

Analysts said his prolonged absence was fuelling tensions between factions in his ruling Socialist Party, although it is unclear whether his opponents can capitalise on the situation.

Hours after releasing new video on Wednesday of the president walking and chatting with his friend and mentor, Cuba's Fidel Castro, Venezuela cancelled a July 5-6 summit coinciding with its 200th anniversary of independence.

That was a heavy blow for supporters who wanted the charismatic but authoritarian president -- who loves to grandstand at such big events -- back home in time for the national party.

"Uncertainty is now intensifying in Venezuela," said Diego Moya-Ocampos, a Venezuelan analyst at IHS Global Insight. "A prolonged absence by Chavez could encourage a likely political crisis of unprecedented levels."

Inheriting Castro's mantle as Washington's main irritant in Latin America, Chavez has become one of the world's most well known leaders during his 12 years in power.

The official line had been that he was recovering well from an operation to remove a pelvic abscess and will return soon.

Venezuela's benchmark dollar-denominated 2027 global bond rose 1.000 point in price to bid 74.500 with a yield of 13.070. That followed a 2.8 percent rally on Monday.

Local analysts say some in the market appear to have decided a weakened Chavez is better than no Chavez at all -- which would imply a power vacuum and potential for chaos.

A government program to repurchase sovereign bonds and ones from state oil company PDVSA may also be supporting prices.

(Editing by Mohammad Zargham and Sandra Maler)

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