Inter-American Development Bank warns it still cannot lend more money to Venezuela

The Inter-American Development Bank (IDB) is not yet in a position to resume lending to Venezuela, even after the two parties re-established relations suspended eight years ago. The IDB had halted its loans to Venezuela in May 2018 due to non-payment.

"There are several things that need to be worked on before we can lend again," said IDB President Ilan Goldfajn during a press conference in Montevideo. He indicated that the bank would focus on providing technical and humanitarian assistance, particularly in light of recent earthquakes in the country, and engage in discussions about economic policies and macroeconomics.

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

Venezuela, grappling with years of economic crisis, is also facing the aftermath of two powerful earthquakes on June 24 that devastated parts of the country's north, causing over 6,000 deaths and significant material damage. Goldfajn confirmed that the IDB recently visited Caracas as part of the process to reactivate relations.

Despite the restoration of ties, Venezuela still has outstanding debt with the IDB. These debts must be settled through bilateral negotiations before the bank can consider new loans. For now, the focus remains on technical support and dialogue regarding the country's economic situation.

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