Massification of credit in Venezuela will take time

According to the president of the Venezuelan Banking Association (ABV), Pedro Pacheco, the massification of credit in the country will take time. First, aspects such as the restructuring of the external debt and the stabilization of macroeconomic policy must be resolved

In the opinion of Pedro Pacheco, president of the Banking Association of Venezuela (ABV), the massification of credit in the country will take time.

In an interview with Unión Radio on March 7, the president of the ABV indicated: “The solution to the lack of credit in Venezuela involves stabilizing macroeconomic policy and restructuring the external debt, since the country defaulted in 2017.”

According to Pacheco, it is necessary to first resolve, or at least work on it in parallel, the problem of default. Likewise, large capital is required, the restructuring of the debt and that “the terms of how it will be paid be stated.”

Until these crucial issues are addressed, “financing will be very restricted.”

Although credit increased 90 % in the last year, it is insufficient. Pacheco mentioned that currently a credit card “can have a limit between $100 and $150,” which is very little.

In this sense, he said that since the end of 2023, the review of the limit amounts of credit cards began. And although different national banks have already made adjustments, the limit is still insufficient.


Source: finanzasdigital

(Reference image source: Emil Kalibradov at Unsplash)

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