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AmericasSeptember 1 2017

Venezuela’s banks hunker down and prepare for the worst

Venezuela’s economy is in tatters, with sky-high inflation and mass shortages fuelling protests. While banks have made provisions for loan delinquencies, they are hugely reliant on deposits for funds and hamstrung by regulations. Lucinda Elliott reports from Caracas.
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Patricia Díaz has visited her third ATM in Caracas and it is not past midday. Her bank, like those across Venezuela’s banking sector, limits how many bolivar notes she can take out. But the daily withdrawal limit is not keeping up with the country’s triple-digit inflation, and a single trip to the cashpoint barely covers the cost of a sandwich and two cups of coffee.

Ms Díaz is increasingly relying on her debit card, instead of cash, as a form of payment. “I had to ask my cleaning lady to open an account because it’s becoming impossible to take out enough money to pay her salary on time,” she says.

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