IMF and World Bank Restore Ties with Venezuela

New York. Multilateral lenders, the International Monetary Fund (IMF) and the World Bank, have announced the restoration of ties with Venezuela. This decision is considered a significant step toward re-engaging with the interim government of Venezuela.

The Fund and the World Bank had severed ties with Caracas after the international community became divided over whether Nicolas Maduro or Juan Guaido was the legitimate leader following the controversial 2019 presidential election. Recently, IMF Managing Director Kristalina Georgieva issued a statement confirming that work with Venezuela has resumed. She stated that this move was made with the consensus of member nations and would provide long-term benefits to the people of Venezuela.

Similarly, the World Bank has also announced the restoration of relations, basing its decision on the IMF's move. The World Bank last provided a loan to Venezuela in 2005.

Venezuela's interim President Delcy Rodriguez has welcomed the decision, calling it a diplomatic success. She stated that due to the support of various countries, Venezuela has succeeded in returning to the IMF.

Prior to this decision, the US administration led by Donald Trump had lifted sanctions on Rodriguez, which is believed to have helped increase her international recognition.