The Venezuelan government began talks with the International Monetary Fund months ago, which focus on the exchange of views on macroeconomic prospects and the use of international reserves for the financing the recovery in the aftermath. Photo: Venezuelan Presidential Press.

Venezuela’s Acting President, Delcy Rodríguez, met with IMF Managing Director Kristalina Georgieva this Monday in New York to discuss the country’s economic recovery agenda after June Earthquakes.

The meeting took place during Acting President Rodríguez’s official visit to the United States to participate in the 81st session of the United Nations General Assembly. The discussions focused on the South American’s macroeconomic outlook and the use of international reserves to fund the Venezuela Rises plan, aimed at post-earthquake recovery.

Rodríguez was accompanied by a strategic team, including the Vice President for the Economy, Calixto Ortega; the Minister of Hydrocarbons, Paula Henao; and the Chancellor of the Republic, Félix Plasencia, along with other diplomatic representatives.

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The meeting provided an opportunity to assess the joint agenda and international financial relations within the context of the multilateral summit. The IMF has been engaged in conversations with Venezuela for several months, exchanging views on economic perspectives and financial strategies.

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Funds for Reconstruction

The Venezuelan government has accessed $346 million from its own resources at the International Monetary Fund (IMF) to support recovery and reconstruction efforts following the devastating earthquakes of June 24. This significant financial injection will be directed towards assisting affected families in areas such as housing, infrastructure, and essential public services.

The Venezuela Rises plan is a comprehensive initiative designed to revive the country’s economy following recent natural disastersof June 24. The plan emphasizes the use of international reserves to support critical infrastructure projects and social programs, aiming to stabilize the economy and improve living conditions for the country’s people.

Rodríguez emphasized that these funds will be crucial in supporting the families affected by the earthquakes. “These funds will allow us to support families affected by housing, infrastructure, essential public services, among other requirements,” she stated. She also expressed gratitude to Kristalina Georgieva, the managing director of the IMF, for her support and recognized the institutions involved in the process.

Requirement of Blocked Funds

In a previous call on July 8, Rodríguez discussed the release of blocked resources with Georgieva and reiterated the demand for the lifting of sanctions and the unblocking of state assets. The IMF spokesperson, Julie Kozack, clarified that the mechanism used was Venezuela’s reserve tranche, a readily accessible liquidity source that differs from the Special Drawing Rights (SDRs) retained by the organization, amounting to approximately $4.5 billion.

The Venezuelan government continues to demand the release of $5 billion in SDRs retained by the IMF. William Castillo, the Vice Minister of Anti-Blockade Policies, stated that only $200 million of these funds have been liquidated, managed through the Latin American Development Bank (CAF). These resources are essential for intensifying emergency response and financing the national reconstruction plan post-earthquake.

Castillo reiterated the government’s commitment to negotiating and dialoguing for the release of these funds. He emphasized that the technical-academic design for the second phase of recovery is supported by the Venezuelan College of Engineers, academic institutions, research institutes, and public and private universities.

In addition to these financial efforts, Rodríguez is engaged in a diplomatic agenda in New York. She met with the delegation of the Inter-American Development Bank (IDB), led by its president, Ilan Goldfajn, and vice president, Everett Eissenstat.

Rodríguez’s visit to New York is part of a broader diplomatic effort to strengthen Venezuela’s international relations and seek support for its economic recovery. The meeting with Georgieva underscores the importance of global cooperation in addressing the country’s economic challenges.

The IMF has been a key partner in Bolivarian’s economic recovery efforts, providing technical assistance and financial support. The discussions in New York are expected to pave the way for further collaboration between the two entities, focusing on sustainable economic growth and financial stability.

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