IMF, World Bank resume ties with Venezuela after six-year freeze

The International Monetary Fund (IMF) and the World Bank have resumed dealings with Venezuela, which had been suspended in 2019, the IMF said.

“Guided by the views of International Monetary Fund (IMF) 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 Rodríguez,” the statement said.

Venezuela has been a member of the IMF since December 1946. Engagement with the country was paused in March 2019 due to issues related to government recognition.

“The International Monetary Fund and the World Bank said on Thursday they had resumed dealings with Venezuela, which had been paused since 2019 due to government recognition issues.”

The decision paves the way for a full IMF assessment of Venezuela’s economy for the first time in around two decades, and could eventually unlock access to billions of dollars in financing through frozen Special Drawing Rights (SDRs).

The IMF Managing Director also confirmed the renewed engagement in separate remarks, reiterating that the Fund is acting in accordance with the views of its membership.

The World Bank Group also issued a statement confirming it is resuming dealings with Venezuela’s government under Rodríguez. Its last loan to the country was issued in 2005.

The resumption comes after years of suspended contact following disputes over recognition of Venezuelan authorities, and marks a potential step toward renewed economic assessment and possible future financial arrangements, including debt sustainability analysis and re-engagement with international lending programs.

By Vafa Guliyeva