The International Monetary Fund (IMF) and the World Bank have announced that they are resuming formal dealings with Venezuela after relations were paused in 2019. The decision was made after an IMF polling process among member countries, which found majority support for recognizing the current Venezuelan administration led by acting President Delcy Rodríguez. Both institutions said they would now work with Venezuela under her government.
The World Bank stated that Venezuela has been a member since 1946. It also said its last loan to the country was issued in 2005. Relations had remained frozen for years because of disputes within the international community over who should be recognized as Venezuela’s legitimate leader. That disagreement followed contested presidential elections and a political struggle between Nicolás Maduro and opposition figure Juan Guaidó.
IMF Managing Director Kristalina Georgieva said the Fund’s decision was based on the views of its member countries. In a public statement, she said the move would allow the IMF to re-engage with Venezuela in a way that could benefit the Venezuelan people. Soon after, the World Bank announced it would follow the IMF’s lead and restart its own dealings with Caracas.
The change comes several months after the administration of Donald Trump lifted sanctions on Rodríguez. Washington has since worked with her administration and has also shown interest in expanding United States business activity in Venezuela’s oil and mining industries.
Rodríguez welcomed the announcements and described them as progress for Venezuela’s diplomacy and economy. In remarks broadcast on state television, she thanked several countries for supporting Venezuela’s return to the IMF. She also thanked Trump and Marco Rubio for helping restore relations with the financial institutions.
The renewed ties could open the door for Venezuela to request financial support if its government chooses to do so. Analysts say the country faces heavy debt pressures, with total external debt estimated between $150 billion and $170 billion. Venezuela also has around $60 billion in defaulted bonds, according to market estimates.
Another possible benefit involves special drawing rights, or SDRs, which are reserve assets managed by the IMF. JPMorgan has estimated that Venezuela’s available SDR holdings may be worth around $5 billion. Access to those assets could provide short-term financial relief.
The IMF had previously rejected a Venezuelan request in 2020 for a $5 billion emergency loan during the COVID-19 pandemic. At that time, the Fund said there was no clear international agreement on who was the country’s lawful leader.
In recent weeks, the IMF said it had already started limited re-engagement by gathering basic economic data after years of gaps in official reporting. A deeper relationship could eventually lead to a broader lending program and possible debt restructuring talks.
For Venezuela, the decision marks a return to formal contact with two major global lenders after years of isolation. What happens next will depend on economic conditions, future negotiations, and whether the government seeks outside financing.
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