The Venezuelan economy remains mired in a recession and households have reduced consumption. Therefore, Hugo Chávez's administration has relied on state-run banks to facilitate the provision of cheap credit to purchase cars, white goods, brown goods, vacation packages, and products of the basic food basket.

The state-run banks Banco de Venezuela, Tesoro and Bicentenario will provide a credit card to workers who hold a payroll account and receive their payment in these institutions in order to purchase products at a low-interest rate in the state-run food distribution network.

"A card will be launched to be used in the case of Bicentenario Hypermarkets, so that customers who hold a payroll account in Banco de Venezuela, Bicentenario and Tesoro can buy food, white goods, brown goods, and products of the basic food basket," Minister for Public Banking Humberto Ortega told the state-run TV station Venezolana de Televisión (VTV).

At the same time, the government established a "good living card," which - for practical purposes - will be another credit card for those who hold a payroll account at those banks. In addition to financing consumption in Bicentenario Hypermarkets, it can be used to purchase products in the state-run Biceabastos distribution network, where items of the basic food basket are basically sold, and buy tour packages at the state-run travel agency Venezolana de Turismo (Venetur).

In a mandatory nationwide radio and television broadcast, President Chávez gave an example: this credit could be used to "pay the expenses of a honeymoon."

The incentive measures to increase consumption also has the support of the state-run Banco de la Mujer (Women's Bank), which will provide microcredits at a 4 percent interest rate that can be paid within 48 months for the purchase of white products of the Mercal Hogar brand.

Furthermore, the government provides facilities to buy cars.

These credit facilities to get financing are aimed at a population that feels the impact of the highest inflation rates in Latin America and has been hit by the deterioration of purchasing power.

Translated by Gerardo Cárdenas