The International Monetary Fund (IMF) and the World Bank have reinstated their cooperation with Venezuela, a relationship that had been suspended since 2019. This marks the first time in two decades that the IMF has been able to conduct a comprehensive assessment of Venezuela’s economy.
According to reports from Reuters, this renewed collaboration could potentially unlock around $5 billion in Special Drawing Rights (SDRs) for Venezuela, which are financial assets allocated to countries that engage with the IMF. Kristalina Georgieva, the managing director of the IMF, stated that the organization is now engaging with the Venezuelan government led by interim president Delcy Rodríguez, following the position of the majority of its member states. The World Bank has also confirmed its renewed partnership with Rodríguez’s administration, which last received a loan from the institution in 2005.
“This is a very important step for the Venezuelan economy,” Rodríguez said in a televised address, expressing gratitude to former U.S. President Donald Trump and Secretary of State Marco Rubio for their assistance in normalizing relations with the IMF.
U.S. bank holding company JPMorgan estimates that Venezuela’s SDRs could amount to approximately $5 billion, a significant asset for a nation looking to stabilize its economy. Meanwhile, investors are increasingly purchasing Venezuelan bonds, hoping that the political shift will facilitate a debt restructuring process. Earlier this year, the IMF announced it would begin to re-engage with Venezuela, starting with data collection and economic evaluation after years of limited information. However, a full debt restructuring would typically require a new IMF credit program and data to determine a sustainable debt level for the country.
In a separate development, on January 3, U.S. military forces conducted strikes in Caracas, the capital of Venezuela. In response, the Venezuelan government declared a state of emergency and mobilized its armed forces, promising to file complaints with the United Nations and other organizations against the U.S. government.
Colombian President Gustavo Petro reported that the U.S. targeted several military and governmental sites in Venezuela, including the national parliament. Opposition leader and Nobel Peace Prize laureate María Corina Machado urged Venezuelans to “take power into their own hands” and be prepared to act based on official communications.
Later, Trump announced the capture of Venezuelan leader Nicolás Maduro and his wife, Cilia Flores, who were brought to the U.S. to face charges. Maduro is accused of drug trafficking, cocaine smuggling, and illegal possession of weapons and explosives. Both were taken to a federal detention center in Brooklyn, New York.
In court, they pleaded not guilty, with Maduro asserting that he remains the legitimate president of Venezuela and considers himself a prisoner of war. He did not request release. The judge scheduled the next hearing for March 17, 2026.
Delcy Rodríguez addressed the nation, asserting that a “national government” is in operation, while maintaining that Maduro is still the “only president of Venezuela.” However, she later expressed willingness to cooperate with the U.S. Trump confirmed that Rodríguez is collaborating with American officials but warned that if she ceases to do so, a second military operation could be initiated in the country.
Previously, Trump hinted that Rodríguez would face severe consequences, potentially greater than those faced by Maduro, if she did not comply with Washington’s demands. On January 5, Rodríguez announced her readiness to engage with the U.S. and called for dialogue instead of confrontation.
On January 10, U.S. Treasury Secretary Scott Bessent indicated that some sanctions might be lifted to facilitate oil sales from Venezuela.
The IMF and World Bank have resumed cooperation with Venezuela, allowing for a comprehensive economic assessment and potential financial support. Meanwhile, U.S. military actions have escalated tensions, with Maduro and his wife facing serious charges in the U.S.
Source: Reuters