Venezuela's public sector putting the squeeze on private banks

Public banks in Venezuela are putting the squeeze on the private banking sector as efforts by Maduro's government to prioritize growth of public entities are starting to show. The state is increasingly using its own banks for the large quantity of funds it handles, resulting in greater liquidity in public banks at the expense of private ones, Asdrúbal Oliveros, managing partner of Ecoanalítica consultancy firm in Caracas, told BNamericas. In addition, payments to suppliers by PDVSA and other state enterprises are made through state lenders Banco de Venezuela or Banco del Bicentenario, forcing many contractors to open accounts with these banks, Otto Rivero, head of ratings agency CLAVE in Caracas, told BNamericas. More…