Credit is a financial modality that allowed people to solve day-to-day problems by borrowing money from the bank, which could be paid in installments. Many people in the past (about 10 years ago) were beneficiaries of credit; with it, they bought houses, cars, and white goods, among other things.
I remember that my father was able to finish his house thanks to the credit and he was also able to equip it with products that were needed. Since 2017, that has decreased dramatically and now the credits are used to combat the hyperinflationary index that the country has suffered during the last few years.
According to this chart, the amount of credits in Venezuela by each bank has looked like this:
To satisfy the needs of all sectors: commercial, agricultural, manufacturing, and transportation, among others, at least a monetary load of 10 billion dollars is needed, to which private banks only reach almost 2 billion.
The president of Fedecámaras, Carlos Fernández, which is a Venezuelan federation of Chambers of Commerce and Production the country, formed by the main business association of Venezuela, has expressed annoyance at how low the credit fund of the country is, and that it does not even cover all the needs of the public and private sector.
To opt for some of these credits, people resort to "compadrazgo" or interaction, due to the difficulty in obtaining even a minimum of a quarter of this fund.
As I mentioned before, the country's money is being injected specifically to keep inflationary indexes low; which have had a progressive, but downward increase between 2018, 2019, and 2020.
This has even helped to stop the shortage of basic necessity products, for which day by day we have suffered and to obtain them, it was necessary to buy from the so-called "unauthorized sellers" at an exorbitant price.
For the moment, only the banks managed by the government can grant enormous credit financing, however, the most benefited is the commercial sector. We will see if this changes in the future and a more equitable distribution is achieved.
