IMF Restores Relations with Venezuela, Recognizing Rodriguez Government

The International Monetary Fund announced on Thursday that it is restoring relations with Venezuela, a move that had been suspended since March 2019. Managing Director Kristalina Georgieva stated this decision follows guidance from IMF members holding a majority of voting power. Recognition of the government led by acting President Delcy Rodriguez enables the IMF to begin formal economic data collection and potentially offer financial support if requested. This development could pave the way for the World Bank to follow suit, potentially opening new credit lines for the economically struggling nation. Relations broke down in 2019 when the IMF recognized Venezuela's opposition-controlled parliament as the legitimate government. Rodriguez previously served as vice-president until early January, when President Nicolas Maduro was captured by US forces in an overnight operation, leading to her appointment as interim president.