US imposes financial sanctions on Venezuela

The United States has slapped strong financial sanctions on Venezuela, barring banks from any new deals with the government.White House Press Secretary Sarah Sanders said this in a statement after President Donald Trump signed an executive order in this regard. 

Ms Sanders said, the President's new action prohibits dealings in new debt and equity issued by the Venezuelan government and its state oil company. 

It also prohibits dealings in certain existing bonds owned by the Venezuelan public sector, as well as dividend payments to the government.Venezuela has been engulfed in an



economic crisis, featuring skyrocketing inflation and food shortages.

Last month, US had sanctioned Venezuelan President Nicolas Maduro alleging that his administration has attempted to undermine democracy and the rule of law in Venezuela.

The Trump administration had warned of strong economic actions if Maduro's government went ahead with plans to create a constitutional assembly comprised of government loyalists. 

The Venezuelan government established the constitutional assembly which granted Maduro's party sweeping powers.