AFP.— Inter-American Development Bank (IDB) President Ilan Goldfajn ruled out an immediate resumption of lending to Venezuela on Monday, despite the restoration of relations between both sides after an eight-year break.
In June, the IDB accepted Venezuela’s appointment of Calixto José Ortega Sánchez as the country’s new governor to the institution, fully restoring bilateral ties.
The bank halted lending to Venezuela in May 2018 after Caracas defaulted on its obligations.
“Several issues still require work before we can lend to Venezuela again,” Goldfajn said during a press conference while visiting Uruguay’s capital.
For now, the institution will focus on “technical assistance, humanitarian support for the earthquake, discussions, reviewing the data, discussing policy (…) and taking a broader look at macroeconomics,” he added.
After years of economic crisis, Venezuela now faces the challenge of rebuilding part of the country’s northern region following two powerful earthquakes that struck on June 24. The disaster claimed more than 6,000 lives and caused extensive material damage.
Goldfajn also confirmed that an IDB delegation recently traveled to Caracas as part of the process to restore relations.
Venezuela still owes outstanding debt to the IDB, and both sides will address that obligation through bilateral negotiations.
