Venezuela to Issue Credit Cards for Government-Run Retailer

[naaman fletcher]

Venezuela’s government will issue credit cards that allow customers to buy food, refrigerators and vacation packages from state-run companies and pay over time, Public Banking Minister Humberto Ortega said.

The “good living identity card” will permit customers of state-run Banco de Venezuela, Banco Del Tesoro and Banco Bicentenario to purchase goods on credit in any of the government’s chain of hypermarkets and supermarkets, known as Abastos Bicentenarios. Customers will also be able to buy vacations through the state-run travel agency Venezolana de Turismo, known as Venetur, Ortega said today in a statement.

http://www.businessweek.com/news/2010-09-02/venezuela-to-issue-credit-cards-for-government-run-retailer.html

I guess now that Chavez owns the stores he is going to trap people into debt like US stores do.

[Joe Chi Minh]

1. Yeah. It's sure to be the same usurious rates. not.

[naaman fletcher]

2. Of course not.

However most progressives are opposed to the entire credit card culture, not just the usurious rates. But this is Chavez so its ok.

[bherrera]

3. Time will tell

Credit card rates are very high in Venezuela, but the inflation rate is also incredibly high, in excess of 30 % per year. Therefore one can expect very high interest rates. I suspect this will be used as a reward mechanism for those who belong to the government's party. They have a lot of corruption.