Venezuelan footwear production held back by banking restrictions
The president of the Venezuelan Chamber of Footwear and Components (CAVECAL), Tony Di Benedetto, has said in recent comments that the sector is currently covering around 25% of national demand.
“We have the capacity to cover up to 60% or 70% of national demand, but owing to production and productivity issues in our companies, we have not yet reached the required levels,” he said.
Mr Di Benedetto asserted that 25% of national demand represents a number of between 15 and 18 million pairs of shoes, taking into account that total national demand is around 60 million pairs of shoes per year.
He also stated that production costs are “above optimal levels”, given a lack of raw material, as well as a shortage of labour.
In Venezuela, funding for business through bank loans is virtually impossible to secure at the moment. The president of CAVECAL noted: “We really would like bank financing to be opened up a little so that we can count on that to help us improve our operating levels.”
