<\/p>\nListen to this article<\/span>\u00a0|\u00a0<\/span>4 mins<\/span><\/p>\n<\/button>info<\/title><path class=\"icon-main-color\" d=\"M12 0a12 12 0 1 0 0 24 12 12 0 0 0 0-24Zm-.226 3.225a2.039 2.039 0 0 1 2.155 1.924v.193a1.998 1.998 0 0 1-2.155 2.149 2.029 2.029 0 0 1-2.146-2.15 2.039 2.039 0 0 1 1.955-2.122h.193l-.002.006Zm3.227 15.525a.75.75 0 0 1-.752.75H9.75a.75.75 0 0 1-.75-.75v-1.5a.75.75 0 0 1 .752-.75h.748V12h-.75a.75.75 0 0 1-.75-.75v-1.5a.75.75 0 0 1 .752-.751h3a.75.75 0 0 1 .75.752v6.75h.75a.75.75 0 0 1 .75.749L15 18.75Z\"\/><\/svg><\/button><\/div>\n<div aria-live=\"polite\" aria-atomic=\"true\">\n<p>The International Monetary Fund (IMF) has described Venezuela\u2019s economic and humanitarian situation as \u201cquite fragile\u201d, pointing to an estimated triple-digit inflation and a sharply depreciating currency.<\/p>\n<p>In a briefing on Thursday with reporters, spokeswoman Julie Kozack said the organisation continues to closely monitor developments in the South American nation, even though the IMF has had no formal relations with the Venezuelan government since 2019.<\/p>\n<section class=\"more-on\">\n<h2 class=\"more-on__heading\">Recommended Stories<!-- --> <\/h2>\n<p><span class=\"screen-reader-text\">list of 3 items<\/span><span class=\"screen-reader-text\">end of list<\/span><\/section>\n<p>Kozack emphasised that any decision to re-engage would depend on guidance from the IMF\u2019s member countries and the broader international community.<\/p>\n<p>Economic and political crises in Venezuela have driven massive emigration: Since 2014, roughly a quarter of Venezuela\u2019s population \u2013 about 8 million people \u2013 has left the country, creating one of the largest displacement crises in recent history.<\/p>\n<p>The Venezuelan economy in 2026 remains in a state of deep structural crisis.<\/p>\n<p>It is currently navigating a period of unprecedented volatility and rapid policy shifts, following years of hyperinflation and a contraction of its gross domestic product (GDP).<\/p>\n<p>The United States military\u2019s abduction of former President Nicolas Maduro last month has triggered a seismic shift in both the political and economic landscape.<\/p>\n<p>While Maduro remains in US custody facing narco-trafficking charges, the acting administration under interim President Delcy Rodriguez has moved swiftly to implement a plan for stabilisation, recovery and transition.<\/p>\n<p>\u201cVenezuela is undergoing a severe and prolonged economic and humanitarian crisis,\u201d Kozack said during Thursday\u2019s briefing. \u201cSocioeconomic conditions remain very difficult. Poverty is high, inequality is high, and there\u2019s widespread shortages of basic services. The situation overall is quite fragile.\u201d<\/p>\n<p>The IMF figures show Venezuela\u2019s public debt sitting at roughly 180 percent of its GDP right now, before factoring in any court rulings or arbitration payouts from old defaults.<\/p>\n<p>Kozack said the global lender was still gathering information and facts on the best way to proceed with the South American country.<\/p>\n<p>The IMF hasn\u2019t had any formal dealings with Venezuela in more than 20 years. Its last official assessment of the country came in 2004.<\/p>\n<p>In 2007, Venezuela paid off its last World Bank loan under Maduro\u2019s predecessor, the late Hugo Chavez.<\/p>\n<p>If the IMF restores ties with Venezuela, the South American oil exporter would have access to about $4.9bn worth of Special Drawing Rights (SDRs) that were frozen seven years ago, after the IMF refused to recognise Maduro\u2019s leadership.<\/p>\n<p>SDRs are reserve assets whose values are tied to five currencies: the US dollar, the euro, the Chinese renminbi, the Japanese yen and the British pound sterling.<\/p>\n<p>But US engagement in Venezuela could also create change in the country\u2019s economy.<\/p>\n<p>US Treasury Secretary Scott Bessent said last month that the administration of President Donald Trump would be willing to convert Venezuela\u2019s SDRs to dollars to help rebuild the country\u2019s economy.<\/p>\n<p>And last week, the US Department of the Treasury announced it was easing some sanctions on Venezuela\u2019s energy sector.<\/p>\n<p>The Trump administration has placed a heavy focus on Venezuela\u2019s vast oil reserves, even going so far as to claim that the natural resource rightfully belonged to the US.<\/p>\n<p>Citing US oil exploration in the area in the 20th century, Trump has called Venezuela\u2019s decision to nationalise the oil sector the \u201clargest theft of property in the history\u201d of the US.<\/p>\n<p>His government has encouraged foreign investment in Venezuela\u2019s oil sector since Maduro\u2019s removal.<\/p>\n<p>It has also issued two general licences, including one that allows energy companies Chevron, BP, Eni, Shell and Repsol to conduct further oil and gas operations in Venezuela. Those companies already have offices in the country and are among the main partners of state-run oil company PDVSA.<\/p>\n<p>The second licence allows foreign companies to enter new oil and gas investment contracts with PDVSA.<\/p>\n<\/div>\n<p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Listen to this article\u00a0|\u00a04 mins info The International Monetary Fund (IMF) has described Venezuela\u2019s economic and humanitarian situation as \u201cquite fragile\u201d, pointing to an estimated triple-digit inflation and a sharply depreciating currency. In a briefing on Thursday with reporters, spokeswoman Julie Kozack said the organisation continues to closely monitor developments in the South American nation, […]<\/p>\n","protected":false},"author":1,"featured_media":12835,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-12834","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latin-america-news"],"_links":{"self":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts\/12834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12834"}],"version-history":[{"count":0,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts\/12834\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/media\/12835"}],"wp:attachment":[{"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}