Venezuela has signed an agreement with Iran for a $500 million credit line to fund joint investments and help improve supplies of goods "necessary for the Venezuelan people," President Nicolas Maduro said on Friday.

Declining oil prices have crimped Venezuela's cash-flow and aggravated shortages of consumer goods ranging from dish soap to milk, leaving Maduro's government seeking financing from allies around the world.

"We've signed (an agreement for) an open credit for $500 million that will begin to function immediately," Maduro said during a televised address following a meeting with an Iranian delegation.

By Reuters