Inter-American Development Bank Plans Two-Year Engagement With Venezuela

The Inter-American Development Bank is developing a two-year engagement plan for Venezuela, prioritizing electricity and social protection. President Ilan Goldfajn announced that the bank is conducting missions to the country to analyze sectoral requirements and the macroeconomic framework to create a formal engagement note.

This move marks a shift for the largest development lender in Latin America and the Caribbean, which ceased providing new loans to Venezuela in May 2018 following a payment default. Venezuela currently holds approximately $2 billion in outstanding loans with the institution.

While the bank is actively planning future actions and reengaging with Venezuelan officials, Goldfajn has not specified a date for the resumption of financing or a method for resolving the country's existing arrears.