In brief

On 21 January 2021, the Office of the National Superintendent for Banking Sector Institutions (SUDEBAN) issued a notice that prohibits banking institutions from carrying out credit operations using foreign currency, without prior authorization from SUDEBAN and the Central Bank of Venezuela ("BCV") ("Notice").1

The Notice refers to the definition of credit established in the Banking Sector Institutions Law2  as operations carried out solely in the national currency, including financial leasing, invoice discounting, letters of credit, discounts, advances, reports, guarantees and any other financing modalities or active operations carried out by banking institutions.

The Notice prohibits banking institutions from granting credits in foreign currency with resources obtained from funds deposited by the public in foreign currency or any other modality. If banking institutions wish to carry out credit operations in foreign currency, they need the express authorization of the BCV and SUDEBAN to do so.

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