Plastic shines again! Venezuelan banks raise credit card limits

After years kept at the bottom of the drawer because their limits couldn't even buy a cup of coffee, credit cards are back in a big way.

Last week, the Superintendency of Banking Institutions (Sudeban) gave the green light for banks to begin aggressively raising bol\u00edvar-denominated loans, but with a twist that changes everything: they are indexed to the official dollar exchange rate to protect the money from inflation.

What does this mean on the street? Private and public banks have already begun sending mass notifications to their customers with increases equivalent to credit lines of between $100 and $500 for everyday spending.

This injection of "plastic money" restores immediate purchasing power to thousands of citizens who will no longer have to wait for payday to cover a medical emergency, buy a spare part or do the grocery shopping.

For the national economy, this is pure gasoline...

Merchants are already rubbing their hands together, as they project that this revival of consumer credit will give a powerful boost to sales at supermarkets, pharmacies and appliance stores. All this money movement is laying the groundwork for a year-end season with far more activity at cash registers across the country.