The International Monetary Fund and the World Bank announced Thursday that they have restarted engagement with Venezuela after a seven-year pause tied to disputes over which authorities the institutions should recognize.
Relations broke down in 2019 when the IMF treated the opposition that controlled the National Assembly as Venezuela’s legitimate government. In recent days the IMF surveyed its membership about whether acting President Delcy Rodríguez should be regarded as the country’s official leader. Guided by the positions of members holding a majority of the IMF’s voting power and in line with long-standing practice, Managing Director Kristalina Georgieva said the IMF will now deal with the government under Rodríguez.
The World Bank Group likewise said it will resume interactions with the government led by Rodríguez. Venezuela has been a World Bank member since 1946; its last World Bank loan was disbursed in 2005.
Formal engagement with the IMF opens the way for a comprehensive assessment of Venezuela’s economy and could pave the way to access billions in frozen special drawing rights. Restored ties may also encourage foreign private investors who have been cautious about committing capital to Venezuela.
On state television Rodríguez said Venezuela’s representation at the institutions had been reinstated and that processes involving the country’s rights within the organizations were being normalized. She called the step important for the economy and expressed gratitude to several foreign officials, including U.S. President Donald Trump and Senator Marco Rubio, for helping to normalize relations with the IMF.
Thursday’s decision follows U.S. actions in January that included efforts to remove President Nicolás Maduro and reports of a U.S. forces raid on Caracas. The United States has since engaged with Rodríguez and indicated interest in expanding involvement in Venezuela’s oil and mining sectors.
An accompanying video explores the major challenges facing Venezuela’s oil industry.
Edited by: Sean Sinico