WASHINGTON: The IMF and World Bank said Thursday they are restoring relations with Venezuela, further legitimizing the interim government and opening new doors to financial support.
Within hours the Venezuelan government confirmed it too would recognize the relationship that has been frozen since 2019.
“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 in a statement.
On Venezuelan state television Thursday night, Rodriguez said: “We are normalizing all processes that involve Venezuela’s rights in the organization.”
Over recent days, the Fund polled its members on whether they saw Rodriguez as the legitimate leader of Venezuela.
The World Bank quickly followed the Fund in recognizing the Rodriguez government, saying in a statement, “Guided by the outcome of the IMF’s polling process, the World Bank Group today announced that it is resuming dealings with the Government of Venezuela, under the administration of acting President Delcy Rodriguez.”
Recognition of the Rodriguez government by both institutions paves the way for them to formally begin economic data-gathering, provide technical advice, and to potentially offer financial support to the government, if Venezuela were to ask for it.
Relations between the financial institutions and Venezuela broke down in March 2019 when the Fund recognized the country’s opposition — which controlled parliament — as the legitimate government of the South American country.
The institutions and Venezuela broke-up financially long before their political divorce.
The last formal assessment of the Venezuelan economy by the IMF was in 2004, and Caracas cleared its World Bank tab in 2007.
Rodriguez was the country’s vice president until early January, when US forces captured Venezuelan President Nicolas Maduro in a shock overnight operation. Rodriguez was subsequently made interim president.
Since then, Washington has exerted heavy pressure on the country to open its economy to foreign investment — especially its energy sector.
“Trump frequently and publicly talks about how much he likes Delcy and how closely they’re working together,” Henry Ziemer at the Center for Strategic and International Studies in Washington told AFP. “But the institutional recognition is, I think, an important next step — going beyond the personal to the institutional.”
“It’s important for Delcy’s appearance of legitimacy,” he said.
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