IMF Eyes Fragile Venezuela: Challenges and Opportunities

The IMF highlights Venezuela's fragile economic and humanitarian crisis, marked by triple-digit inflation and public debt at 180% of GDP. Despite paused relations since 2019, the IMF remains watchful, awaiting major shareholders' recognition of leadership to potentially unlock $4.9 billion in Special Drawing Rights.

The International Monetary Fund (IMF) has flagged Venezuela's economic and humanitarian condition as 'quite fragile,' with inflation soaring to estimated triple digits and the currency rapidly depreciating. An IMF spokeswoman, Julie Kozack, emphasized the continuation of monitoring developments in Venezuela, despite suspended relations since 2019.

About a quarter of Venezuela's population has left the country amid high poverty and inequality levels, along with widespread shortages of basic services. Venezuela's public debt is projected to be 180% of its GDP. Discussions between IMF Managing Director Kristalina Georgieva and U.S. Treasury Secretary Scott Bessent continue as the IMF gathers information to determine the path forward.

U.S. President Donald Trump's recent statements on Venezuela heighten the geopolitical complexity, recognizing interim President Delcy Rodriguez as the legitimate leader. An untangling of Venezuela's international ties could release $4.9 billion in frozen IMF assets, contingent on international agreement and Venezuelan government cooperation.

(With inputs from agencies.)