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Venezuela and IMF discuss reconstruction financing after June 24 earthquakes
Herz — Business Desk · · 30s summary · 2 min read
The essentials
Venezuela and the International Monetary Fund are discussing how to finance recovery and reconstruction after the two earthquakes of June 24. According to ANSA, the IMF approved the country’s access to $346 million, equivalent to Venezuela’s minimum quota allocation. The World Bank estimates direct physical damage at about $20 billion. Official figures cited by the agency report more than 5,500 deaths, at least 16,740 injuries and nearly 18,000 displaced people. The talks also covered the economic outlook, policy priorities and the possible use of international reserves.
- Venezuela and the IMF are examining reconstruction financing mechanisms.
- The IMF approved Venezuela’s access to $346 million.
- The World Bank estimates direct physical damage at about $20 billion.
- The earthquakes killed more than 5,500 people, according to official figures.
What we know
Venezuela’s interim president, Delcy Rodríguez, met a delegation from the International Monetary Fund after the two earthquakes of June 24. According to ANSA, the talks focused on financing recovery and reconstruction.
The International Monetary Fund, referred to below as the IMF, approved Venezuela’s access to $346 million. The amount corresponds to the country’s minimum quota allocation.
The discussions also covered the macroeconomic outlook, economic policy priorities and the possible use of international reserves to finance the Venezuela Renace recovery plan.
Who attended the meeting
Wednesday’s meeting included Nigel Chalk, director of the IMF’s Western Hemisphere Department, and Álvaro Piris, the IMF mission chief for Venezuela.
Venezuelan deputy ministers Calixto Ortega and Anabel Pereira also attended, alongside Central Bank president Luis Pérez.
The earthquake toll
Official figures cited by ANSA report more than 5,500 deaths and at least 16,740 injuries. Nearly 18,000 people were displaced.
More than 5,500
people killed
At least 16,740
people injured
Nearly 18,000
people displaced
The World Bank estimates that the earthquakes caused about $20 billion in direct physical damage.
Reconstruction amid high inflation
Venezuela is approaching reconstruction in a complex macroeconomic and financial environment. Annual inflation remains above 200%.
The IMF-approved amount is $346 million, compared with an estimated $20 billion in direct physical damage.
Relations moving toward normalization
The Venezuelan government’s statement presents the meeting as a sign of the gradual normalization of relations between Venezuela and the IMF.
The government also describes the meeting as part of a broader engagement with the international financial community.
What remains unclear
The government statement refers to the Venezuela Renace recovery plan, but the available information does not specify its scope or implementation arrangements.
Any use of international reserves remains a possibility. The available information gives no amount that could be drawn from those reserves.
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