The IMF and World Bank announce the resumption of relations with Venezuela
In a pivotal move that strengthens the international legitimacy of the current government in Caracas, the International Monetary Fund and the World Bank announced on Thursday the resumption of their official relations with Venezuela, paving the way for broad financial and technical cooperation after a years-long rift.
Within hours of the announcement, the Venezuelan government confirmed the restoration of communication channels that had been frozen with the two international financial institutions since 2019.
In an official statement, the Managing Director of the International Monetary Fund, Kristalina Georgieva, explained that the decision was "guided by the views of the Fund's members who represent a majority of the voting power," confirming that the Fund will henceforth deal with the Venezuelan government headed by interim President Delcy Rodriguez.
For its part, the World Bank followed the IMF's lead, announcing its official recognition of the Rodríguez government and the resumption of all dealings with it. This shift aims to enable both institutions to begin collecting official economic data, providing technical advice, and potentially offering direct financial support should Caracas request it.
In her first official comment, Delcy Rodríguez welcomed the move, saying in an interview on state television, "We are restoring Venezuela's legitimate rights within these international organizations." The IMF had conducted a survey among its members in recent days to gauge their stance on the legitimacy of Rodríguez's leadership before making its final decision.
This return comes after a long hiatus; relations had officially broken off in March 2019, when the IMF recognized the opposition that controlled parliament as the legitimate government of the country.
It is worth noting that the financial and economic gap between Venezuela and international institutions dates back to years before the recent political crisis; the last official assessment of the Venezuelan economy by the IMF dates back to 2004, while Caracas fully repaid its debts to the World Bank in 2007, before the relationship entered a prolonged period of stagnation. link