IMF and World Bank resume dealings with Venezuela, restoring recognition and paving way for economic assessment and funding access.
- +IMF, World Bank Resume Dealings With Venezuela After Seven-Year Break
The International Monetary Fund (IMF) and the World Bank have resumed formal dealings with Venezuela after a seven-year suspension triggered by disputes over the country’s legitimate government.
The International Monetary Fund (IMF) and the World Bank have resumed formal dealings with Venezuela after a seven-year suspension triggered by disputes over the country’s legitimate government.
Relations between Venezuela and the institutions collapsed in 2019 when the IMF recognised the opposition-controlled parliament as the country’s official authority, effectively halting engagement with the sitting government.
Announcing the decision, the IMF said it had consulted its member states, with those representing a majority of its voting power backing the move to recognise the current administration led by acting President Delcy Rodríguez.
The Fund stated that, in line with its long-standing practices, it would now engage with Venezuela under Rodríguez’s leadership, formally restoring the country’s representation within the organisation.
Shortly after, the World Bank confirmed it would also resume dealings with Venezuela under the same administration, signalling a coordinated return of the Bretton Woods institutions to the country.
The renewed engagement is expected to unlock a series of economic processes, including a comprehensive IMF assessment of Venezuela’s economy. It could also open access to financial resources such as previously frozen Special Drawing Rights, potentially amounting to billions of dollars.
Rodríguez described the development as a major milestone for Venezuela’s economy, saying it marked the normalisation of the country’s participation in key international financial institutions.
“We are normalising all processes that involve Venezuela’s rights in the organisation,” she said during a televised address, adding that the step would strengthen economic recovery efforts.
She also acknowledged the role of the United States in facilitating the renewed engagement, thanking Donald Trump and Marco Rubio, among others.
The decision follows a dramatic political shift earlier this year, when US actions led to the removal of former President Nicolás Maduro, paving the way for a new transitional authority in Caracas.
Analysts say the restoration of ties could help ease concerns among foreign investors, many of whom had remained cautious due to prolonged uncertainty over governance and economic policy direction in Venezuela.
