Citibank to Cancel Some Venezuela Accounts as Economy Spirals
The bank joins other American firms that are reducing operations in the country.
— -- Citibank has informed the Venezuelan government that it will stop providing services to “certain accounts in the country” as the Latin American nation’s economy continues to spiral.
“Following a periodic risk management review in Venezuela, Citi has decided to discontinue correspondent banking and the servicing of certain accounts in the country,” the company said in a statement. The company would not provide details of the review.
A company spokesperson, Danielle Romero-Apsilos, said that the decision was made independent of the U.S. government.
"While Citi made the United States government aware of our decision regarding these accounts, this decision was made as a company and not under the direction or suggestion of the United States government,” she said.
While the U.S. and Venezuela maintain diplomatic relations, the Venezuelan government often blames the U.S. as well as private industry for its economic woes.
On Monday, Venezuelan President Nicolas Maduro said that the accounts belonged to the country’s Central Bank and the Bank of Venezuela. The embattled president described the move as “a financial blockade.”
Citibank isn't the first American company to be affected by the ongoing crisis in Venezuela.
Maduro also said on Monday that the government would take control of a factory belonging to American personal care company Kimberly-Clark. The company had previously said that it was unable to continue production, according to the Associated Press.
In May, Coca-Cola halted production of its sugar-sweetened beverages amid widespread sugar shortages in the country. It has since resumed partial production at two plants in the country, a company spokesperson told ABC News.
The resumption of Coca-Cola availability means that Venezuela leaves the exclusive club of countries where the famed fizzy drink isn’t available -- namely Cuba and North Korea.
Last year, American Airlines wrote off nearly $600 million that was trapped in the country, and in April it cancelled flights between New York and the Venezuelan capital, Caracas. However, it still maintains other routes into the country.
As the country’s economy spirals, efforts have been mounted to recall President Maduro. His party has had a solid grip on government in the country for nearly two decades.
However, in a shock parliamentary vote in December, his ruling PSUV party was trounced by an opposition coalition.
As the politics play out, much of the population languishes, forced to stand in line for hours on end to buy even the most basic food, medicine, and other supplies.