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A photo of Venezuelan bank notes scattered on the street has been shared by online users alongside claims it is a depiction of current monetary values in the country. Examples of users sharing the photo on Facebook saying it shows current bank notes in Venezuela, can be seen (here) and (here). This scene is missing context, however, as it shows now-worthless notes tossed on the street following a bank robbery in the town of Merida the year after the Bolivar Fuerte was replaced. The photos show the aftermath of a Venezuelan bank robbery in 2019. Thieves discarded worthless currency on the streets as the stolen money was of a retired currency.
"They are useless," administrator Lina Pereira, from the central city of Valencia, said of her two credit cards, which both have low limits. "My parents bought appliances and computers with their credit cards, but that's a memory for Venezuelans." As incomes have fallen and living costs have grown, credit cards have become vital for many people to make everyday purchases in supermarkets and pharmacies, even as credit limits stagnate and some banks eliminate the cards altogether. In 2012 that figure was 12% in Venezuela, while in countries like the Dominican Republic and Bolivia credit cards currently account for 5% of banks' credit portfolios, according to those country's regulators. "With the limit on cards you can't even pay for lunch," said Gregorio Afonso, a 53-year-old university professor who has two local credit cards and an income of $20 monthly.
CARACAS, Sept 28 (Reuters) - Venezuelan business owners struggling to get access to credit amid their country's continued economic crisis are seeking loans through foreign banks, business people and finance industry sources told Reuters. Large companies in need of financing have begun seeking loans from foreign banks with local partners or connections, private sector and finance sources said. Several companies seeking credit are from the agricultural sector and need the funds to purchase wheat, fertilizers and other goods from abroad, three sources said. U.S. sanctions imposed in 2019 are focused on limiting Maduro's access to financing and do not prohibit private Venezuelan companies from operating abroad. "The government transfers the biggest burden of its adjustment plan to the private sector by restricting credit for companies and consumer credit, which partly affects households," said economist Daniel Cadenas.
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