- CHRISTY CONTRERAS
03 de septiembre de 2017 09:45 AM
Actualizado el 04 de septiembre de 2017 05:01 AM
Venezuela could have access to funding from multilateral organizations or international financing entities. However, the government “should take care of falling in an excessive and risky debt for the country,” financial expert Francisco Rodríguez cautioned.
In the opinion of the Chief Economist of think tank Torino Capital, first thing is to ascertain whether international funding is actually necessary. “One of the issues in the country economic policy, throughout its history, is that governments frequently use the availability of funds in the international reserves to maintain exchange rates that turn into capital flight,” he said.
Rodríguez added that international funding would be more feasible if the government does not try to maintain a low exchange rate. Otherwise, foreign creditors could be worried about the insufficient availability of dollars to cover the demand.
As regards the high inflation rate in Venezuela, the expert recommended: “To diminish inflation, a process accompanied by an articulated macroeconomic strategy is required. If such macroeconomic strategy is implemented and adopted in a coherent and consistent manner, Venezuela could go to global markets and seek funding to sort out this time of low oil prices, refinance debt payment and find a niche in its foreign currency flows to shield essential imports.”