The growing crisis in Venezuela has had an impact on the economy of the world as business owners across the globe become worried about the growing implications on the world of finance. Open Corporates reports one of the major business partners of Venezuela is India, which has recently looked to develop a new business agreement with the South American nation in a bid to avoid any future defaults.
According to The Hindu members of the Indian Government have formulated a new agreement that has been given to the Venezuelan authorities to be discussed in a bid to keep trade routes open between the two countries. Indian authorities have become concerned by falling levels of exports to Venezuela, in particular the pharmaceutical industry that has been badly affected by the economic crisis in Venezuela.
Expert Velasquez Figueroa explains that the new deal being discussed between Venezuela and India will see the introduction of a holding account to act as a buffer for payments on imports into Venezuela from India. The basis of the proposal sees Indian importers paying for Venezuelan goods, including oil, through an Indian bank that will hold a portion of all funds to pay for future exports to the South American country. The vostro account system has been used in the past, but the Venezuelan government will have to agree to the system for the next steps to be taken in its introduction.