International financial institutions reestablish relations with Venezuela

Venezuela Reestablishes Ties with International Monetary Fund and World Bank

The International Monetary Fund (IMF) and the World Bank have announced that they will resume their dealings with Venezuela, effective immediately. The move comes after a period of severance in 2019, when the financial institutions cut ties with the Latin American nation due to disagreements over the legitimacy of its leadership.

According to an IMF statement, the institution has resumed relations with Venezuela under the administration of acting President Delcy Rodriguez. Kristalina Georgieva, Managing Director of the IMF, stated that this decision was made in accordance with the views of the institution’s members and aims to benefit the Venezuelan people.

The World Bank subsequently announced its intention to follow the IMF’s lead, stating that it had been guided by the outcome of the fellow lender’s decision-making process. The bank had last provided a loan to Venezuela in 2005.

Acting President Rodriguez welcomed the announcements, describing them as “a great achievement of Venezuelan diplomacy.” She expressed gratitude to countries and governments that supported the move.

The resumption of ties with the IMF and World Bank clears the way for Venezuela to request financial assistance if needed. The country faces significant debt burdens, with total external liabilities estimated at over $150 billion. In 2020, the IMF rejected a request for an emergency loan due to concerns about the legitimacy of Maduro’s leadership.

Venezuela has been a member of both the IMF and World Bank since 1946.

Source: Al Jazeera