Venezuela is 'desperately looking for funds'

Source: CNBC

Venezuela is desperate for cash.

Days after OPEC decided not to give into Venezuela's pleas to cut oil production, President Nicolas Maduro has begun talking up several moves to raise money, including plans to slash 20 percent of "unproductive" spending and an attempt at "perfecting" the country's foreign exchange system.

"Clearly the government is trying to send signs to the market that they are working on necessary adjustments that the economy needs in order to honor international commitments and keep up with social policies, which are essential for political stability," said Diego Moya-Ocampos, a senior political risk analyst at IHS. "However, these policy adjustments are not enough. This reflects simply that the government is desperately looking for funds to compensate for the lost revenues from declining oil prices."

The sharp decline in oil prices- Brent crude is at a five-year low-is making Venezuela's autocratic government act swiftly. The commodity accounts for 95 percent of the country's export earnings.


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