The International Monetary Fund (IMF) and the World Bank announced Thursday they have resumed dealings with Venezuela after a seven-year pause over government recognition disputes.
Relations with the institutions collapsed in 2019 when the IMF recognized the opposition, which controlled the parliament, as Venezuela’s legitimate government.
In recent days the IMF polled its members on whether they regarded acting President Delcy Rodríguez as Venezuela’s legitimate leader. “Guided by the views of International Monetary Fund members representing a majority of the IMF’s total voting power, and consistent with long standing practice, the Managing Director Kristalina Georgieva today announced that the IMF is now dealing with the Government of Venezuela, under the administration of acting President Delcy Rodriguez,” the IMF said.
The World Bank Group said it was also resuming dealings with the government under Rodríguez. Venezuela has been a World Bank member since 1946; its last loan was in 2005.
Formal engagement opens the way for a full IMF assessment of the Venezuelan economy and could unlock billions of dollars in frozen special drawing rights. Institutional recognition may also reassure foreign private investors who have been reluctant to commit to the beleaguered economy.
“We have resumed Venezuela’s representation in this international organization…we are normalizing all processes that involve Venezuela’s rights in the organization,” Rodríguez said on state television. “This is a very important step for the Venezuelan economy,” she added, thanking US President Donald Trump and Senator Marco Rubio, among others, for help in normalizing relations with the IMF.
Thursday’s move follows actions by the Trump administration in January that deposed President Nicolás Maduro on January 3, including a US forces raid on Caracas. The US has since been working with Rodríguez and is actively seeking to expand its presence in Venezuela’s oil and mining sectors.
The huge problem with Venezuela’s oil (embedded video)
Edited by: Sean Sinico