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Venezuela: IMF releases $346 million after earthquake
🇩🇪 Germany /Disasters & Emergencies

Venezuela: IMF releases $346 million after earthquake

From Der Spiegel · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News Official statement Outcome reported
  • The International Monetary Fund (IMF) has released $346 million to Venezuela from its own reserves for post-earthquake reconstruction.
  • The funds are designated for urgent humanitarian needs following the devastating double earthquake in late June.
  • Venezuela and the IMF officially resumed relations in April after a seven-year hiatus, with the released funds marking a step in their renewed engagement.

The International Monetary Fund (IMF) has released $346 million to Venezuela, drawn from the country's own reserves held by the fund. This financial assistance is earmarked for the urgent reconstruction efforts following the severe double earthquake that struck the South American nation in late June.

IMF Managing Director Kristalina Georgieva announced on Friday via the online service X that the funds are intended to address critical humanitarian needs. Venezuela's acting President Delcy Rodríguez confirmed via Telegram that the money, originating from Venezuela's balance with the IMF, will be utilized for rebuilding and supporting affected families.

The funds originated from Venezuela's own reserves at the Fund and were accessed for urgent humanitarian needs.

— Kristalina GeorgievaThe IMF Managing Director explained the source and purpose of the released funds.

The twin earthquakes, measuring 7.2 and 7.5 magnitude, hit Venezuela on June 24. Official reports indicate that over 5,000 people have died, with 16,740 injured. Approximately 18,000 individuals lost their homes, and hundreds of buildings sustained damage or were completely destroyed. Venezuelan authorities have not provided figures for the number of missing persons, though United Nations estimates suggest it could be as high as 50,000.

This disbursement follows the official resumption of relations between Venezuela and the IMF in April, ending a seven-year freeze. The relationship had been strained since 2019 when the IMF, along with the United States and other nations, recognized the opposition government led by Juan Guaidó over Nicolás Maduro's administration. Following Maduro's removal from power in January through a U.S. military intervention, the U.S. and other countries recognized the interim government under Rodríguez, paving the way for rapprochement with the IMF. Despite this, the Venezuelan government had previously stated its intention not to seek IMF loans for the time being.

The money from Venezuela's balance with the IMF is to be used for reconstruction and to support affected families.

— Delcy RodríguezVenezuela's acting President detailed how the funds would be allocated.
DistantNews Editorial

Originally published by Der Spiegel in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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