Trump administration explores releasing frozen Venezuelan assets for earthquake reconstruction

The administration of former U.S. President Donald Trump is reportedly in discussions with Venezuelan officials regarding the potential release of billions of dollars in frozen Venezuelan assets. The aim is to channel these funds toward the reconstruction efforts following earthquakes that struck on June 24.

Sources familiar with the talks, as cited by Bloomberg, indicate that the U.S. seeks to avoid committing additional government funds beyond the $386 million already pledged. "We will do more. The Venezuelans will do more," stated Secretary of State Marco Rubio on July 19, emphasizing efforts to help Venezuela access global financing and credit for rebuilding.

The scale of the disaster is substantial. The World Bank has estimated the damage to infrastructure and buildings at $19.6 billion, with nearly 5,400 fatalities reported to date. The reconstruction, including debris removal and new construction, is expected to be costly.

Venezuela's blocked assets are significant, reportedly including about $4.2 billion in International Monetary Fund (IMF) special drawing rights, approximately 30 tons of gold at the Bank of England, and hundreds of millions in global bank accounts. The Venezuelan government under interim president Delcy Rodríguez has already accessed $346 million from its multilateral organization reserves.

However, Washington is proceeding with caution due to Venezuela's history of corruption, a factor that has reportedly slowed the disbursement of previously committed aid. Concurrently, political support for Rodríguez appears to be eroding, with her disapproval rating rising in June. A significant portion of respondents also prioritize electing a new president over reconstruction efforts.

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We will do more. The Venezuelans will do more. We are trying to help them access global financing and credit for their reconstruction. They are still working on an estimate of the total cost, and it will be substantial, both debris removal and new construction.