The Inter-American Development Bank (IDB) is drafting a comprehensive two-year engagement plan for Venezuela, with a particular focus on improving electricity infrastructure and bolstering social protection initiatives. IDB President Ilan Goldfajn announced the move on Monday, signalling a significant step towards renewed collaboration. Goldfajn told Reuters, “We are, of course, re-engaging.” The IDB, the largest development lender across Latin America and the Caribbean, serves 48 member countries, including 26 borrowing members within the region, providing vital financial and technical support for economic and social development.
The IDB previously halted new loan disbursements to Venezuela in May 2018 after the nation fell behind on its payments, leaving approximately $2 billion in outstanding Venezuelan loans. The Inter-American Development Bank is a major development lender focused on fostering economic and social development in Latin America and the Caribbean through financial and technical support. It provides loans, grants, and technical assistance to member countries for various projects designed to improve living conditions and promote sustainable growth.
Goldfajn confirmed that IDB missions are currently visiting Venezuela to assess the situation, analyse the macroeconomic framework, and gather data to formulate the engagement note. This document will outline the bank’s planned activities over the next two years. However, Goldfajn did not specify how Venezuela’s outstanding arrears would be addressed or when new financing might resume. He emphasised the current focus on planning and working collaboratively with Venezuelans, concentrating on the country’s macroeconomic framework and requirements across individual sectors, rather than preparing a separate debt-sustainability analysis at this stage.
