Resumption of Relations with Multilateral Agencies: World Bank and IMF.

The World Bank Group and the International Monetary Fund (IMF) simultaneously announced the resumption of their operational relations with the Government of Venezuela, this decision ends a pause in relations that has been in place since March 2019.

1. Authorities and Recognition Framework

The decision of both bodies is based on the following points:

• The agencies are formally dealing with the Government of Venezuela under the administration of the interim presidency.
• The measure was guided by the opinion of most member countries that represent most of the voting power in the IMF.
• The restoration of relations takes place after a change in Washington's position, which has begun to work with the Delcy Rodríguez administration to expand its presence in the oil and mining sectors.

2. Services and Actions Permitted

• The way is open for a complete IMF assessment of Venezuela's economy, the first in approximately 20 years.
• Access to the frozen SDR is facilitated, which is estimated at $5 billion.
• The IMF has already begun to collect basic data to assess the economy after years of information gaps.
• This reopening is seen as a fundamental premise for a future restructuring of sovereign external debt, estimated at between $150 and $17 billion.

3. Background

• The World Bank noted that its last loan to Venezuela was in 2005.

Venezuela's return to these multilateral agencies marks a significant step towards their reintegration into the global financial system. While it is an important step towards normalizing economic relations, the process of large-scale stabilization and financing will depend on the next detailed economic assessments.