IMF, World Bank say they are restoring ties with Venezuela

The International Monetary Fund (IMF) and the World Bank have announced the resumption of ties with Venezuela under the leadership of acting President Delcy Rodriguez. The move comes after the financial institutions severed relations with Caracas in 2019 due to a split in the international community over Venezuela's rightful leader following disputed presidential elections. The IMF Managing Director, Kristalina Georgieva, stated that the institution had resumed dealings with Venezuela, guided by its members' views, to ultimately benefit the Venezuelan people. The World Bank followed suit shortly after, announcing it would also re-engage with Venezuela under Rodriguez's administration. This development comes several weeks after US President Donald Trump's administration lifted sanctions on Rodriguez, aiming to confer legitimacy on the acting leader. Rodriguez welcomed the announcements as a "great achievement" for Venezuelan diplomacy.

The IMF announced it is restoring relations with Venezuela, which were paused in 2019. The decision, guided by a majority of IMF members, recognizes the government under acting President Delcy Rodriguez. This move allows the IMF to begin collecting economic data and potentially offer financial support if requested by Venezuela. The restoration of ties follows the recognition of the opposition as the legitimate government in 2019. The World Bank is expected to follow suit, potentially opening new credit lines for Venezuela. The change in leadership occurred after US forces captured Venezuelan President Nicolas Maduro, leading to Rodriguez's appointment as interim president.

Venezuelan interim President Delcy Rodriguez is urging the United States to lift all sanctions against Venezuela, despite recent limited sanctions relief from the US Treasury. Rodriguez argues that complete removal is necessary to stabilize Venezuela's struggling economy and attract foreign investment, a priority for US President Trump. Her call comes amid ongoing economic challenges in Venezuela, including protests over low wages and pensions. Critics attribute the crisis to government mismanagement, corruption, and US sanctions. Rodriguez, who assumed the presidency after Nicolas Maduro's removal, has expressed a willingness to cooperate with Trump's demands to open Venezuela to foreign investment.