IMF's Stance on Venezuela: Awaiting Recognition Amid Economic Struggle

The International Monetary Fund's potential engagement with Venezuela hinges on majority recognition of a successor regime. Despite no interaction since 2019, the IMF highlights Venezuela's severe economic issues, including high inflation and currency depreciation, exacerbated by decreases in oil revenue and fiscal deficits.

The International Monetary Fund (IMF) clarified its stance on Venezuela during a briefing on Thursday, stating that re-engagement with the embattled nation would depend on a new government recognized by a majority of member countries. Venezuela's current government, under President Nicolas Maduro, lacks such recognition for IMF interactions.

IMF spokesperson Julie Kozack emphasized that this follows standard IMF protocols in cases of irregular regime changes. Venezuela has seen no official engagement with the IMF since 2019, and the nation has missed annual economic evaluations since 2004 due to ongoing political issues.

Venezuela's economic climate remains dire, exacerbated by declining oil revenues, widening fiscal deficits, and reduced US dollar liquidity. These factors have led to severe inflation and currency depreciation, presenting significant challenges for the Venezuelan population.

(With inputs from agencies.)