IDB President Rules Out Immediate Loans to Venezuela

The president of the Inter-American Development Bank (IDB) has ruled out the immediate resumption of lending to Venezuela, even after the two parties officially restored relations in June following an eight-year hiatus. The bank had suspended its loans to the South American nation in May 2018 due to non-payment by Caracas.

Ilan Goldfajn, the IDB president, explained during a press conference in Montevideo that "several things need to be worked on" before Venezuela can again receive loans. Currently, the bank plans to provide "technical and humanitarian assistance for the earthquake" and engage in "conversations, look at the data, discuss policy (...) and think a little about the macroeconomy." This approach suggests a gradual rebuilding of trust and financial ties.

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There are several things that have to be worked on before we can lend again.

Venezuela, grappling with years of severe economic crisis, is also contending with the aftermath of two powerful earthquakes that struck the northern part of the country on June 24, causing significant damage and over 5,000 fatalities. Goldfajn confirmed that the IDB recently sent a delegation to Caracas as part of the process to re-establish bilateral ties. A key hurdle remains Venezuela's outstanding debt to the IDB, which will require separate negotiations to resolve before any new lending can be considered.

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technical, humanitarian assistance for the earthquake and conversations, look at the data, discuss the policy (...) and think a little about the macroeconomy