JAKARTA - The IMF and the World Bank have reopened relations with Venezuela after breaking up since 2019. According to Al Jazeera, quoted on Friday, April 17, the decision paved the way for Caracas to once again ask for international financial assistance if needed.
The restoration of relations was carried out under the administration of interim President Delcy Rodriguez. Relations between the two Washington-based financial institutions with Caracas were halted after an international split over who was the legitimate leader of Venezuela, Nicolas Maduro or Juan Guaido, after the disputed presidential election.
IMF Managing Director Kristalina Georgieva said her agency had resumed working relations with Venezuela. As reported by Al Jazeera, he said the move was taken based on the views of member countries and was expected to benefit the Venezuelan people.
Shortly thereafter, the World Bank announced it would follow the IMF's lead. The institution also said that the last loan it provided to Caracas occurred in 2005.
This announcement comes weeks after the administration of US President Donald Trump lifted sanctions against Rodriguez. The move is part of Washington's efforts to legitimize the Venezuelan interim leader.
Rodriguez, who took power in January after Maduro was kidnapped and taken to the United States to face drug trafficking and weapons possession charges, welcomed the decision. He called the restoration of relations a major diplomatic achievement for Venezuela.
The IMF and World Bank decisions give Venezuela room to apply for financial assistance if the government judges that its fiscal conditions need to be strengthened. The Latin American country has one of the largest debt burdens in the world, with total foreign liabilities estimated at over US$150 billion.
In 2020, the IMF rejected Venezuela's request for an emergency loan of US$5 billion to help deal with the COVID-19 pandemic. At that time, there was no international consensus on the legitimacy of Maduro's leadership.
Venezuela has been a member of the IMF and the World Bank since 1946.
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