Venezuela’s Credit Cards Useless: Only Good for Opening Doors

Currently, credit cards in Venezuela are not enough to buy an appliance, not even for a dinner for two people, since credit in the country is zero.

“Most credit cards are used to open a door if it is locked, for nothing else,” economist Alejandro Castro told the Voice of America, explaining that “a modern economy has credit to a greater or lesser extent.”

In Venezuela, the credit portfolio barely reaches 1.5% of the gross domestic product (GDP), according to private estimates. It is the lowest in Latin America. And “it is around 1,000 million dollars, which is equivalent to 1.5% of the size of the economy,” continues the expert.

In 2018, the credit portfolio fell to 750 million. The previous year it had been 12,000 million, according to agency reports. At that time, hyperinflation and the depreciation of the bolivar diluted the debts.

And although in 2022 the Venezuelan economy experienced some rebound, thanks to improvements in oil performance and an easing of state control measures over finance, credit never took off.

So, Castro insists: “credit is essential to reactivate the Venezuelan economy.”

With information from VOA