Venezuela Seeks Qatar Loan to Clear $2 Billion IDB Debt

The Government of Venezuela is considering a bridge loan from Qatar to settle more than $2 billion in arrears owed to the Inter-American Development Bank (IDB). Clearing these debts would allow Venezuela to resume receiving financing from the IDB, which stopped issuing new loans to the country in May 2018.

Funding is urgently required to revive the nation's failing infrastructure and power grid. The United States Department of the Treasury has reportedly supported the move and suggested the IDB assist in recovering the power sector. In response, the National Assembly is considering reforms to open the state-controlled electricity sector to foreign investors.

Acting President Delcy Rodriguez expects Venezuela to secure $12 billion in public and private financing over the next two years. The IDB has recently reopened its Caracas office and is preparing a two-year engagement plan focused on electricity and social protections.