Venezuela accesses $346 million from IMF for earthquake recovery

Venezuela has secured access to $346 million of its own resources from the International Monetary Fund (IMF) to aid in the recovery and reconstruction following devastating earthquakes on June 24. The announcement was made by Vice President Delcy Rodríguez.

Rodríguez stated that the funds will be directed towards supporting affected families, addressing critical needs in housing, infrastructure, and essential public services. She expressed gratitude to IMF Managing Director Kristalina Georgieva for her support and commitment, highlighting this as an important step for the nation's recovery.

This access to funds follows a July 8 call between Rodríguez and Georgieva regarding the release of "blocked resources" held by the IMF. Rodríguez reiterated calls for an end to sanctions against Venezuela, arguing the country needs these funds for reconstruction.

IMF spokesperson Julie Kozack explained that Venezuela is utilizing its reserve tranche, a readily accessible source of liquidity. This differs from the Special Drawing Rights (SDRs) the country has had withheld. The reserve tranche is intended to help meet urgent humanitarian needs arising from disasters, aligning with Venezuela's stated intentions.

Relations between the IMF and Venezuela resumed in April after a suspension in 2019. The recent earthquakes have caused significant damage, leaving thousands dead, injured, and homeless, particularly in the La Guaira region. Authorities estimate that 25,000 new homes will be needed as damage assessments continue.