The International Monetary Fund resumed its dealings with Venezuelan authorities after U.S. pressure, following its freezing of activity in the country in 2019.
The IMF broke off relations with Caracas in 2019 “due to government recognition issues,” worsening Venezuela’s already dire economic prospects. After Operation Absolute Resolve and the U.S. decision to support the government of President Delcy Rodriguez, the Trump administration had been pressuring the body to resume working with the government. The IMF announced the resumption of relations on Friday.
“Guided by the views of IMF members representing a majority of total voting power, and consistent with long‑standing practice, the Fund announced that it is resuming dealings with Venezuela’s authorities,” the IMF said.
IMF Director Kristalina Georgieva praised the decision as an “important step, guided by the views of our members,” and argued it would allow it to “re‑engage in a way that can ultimately benefit the Venezuelan people.”
Treasury Secretary Scott Bessent was quick to celebrate the decision, portraying it as a further fulfillment of President Donald Trump’s promise to “help stabilize and restore Venezuela’s economy to benefit both Americans and Venezuelans,” and said the IMF’s move was the result of the U.S.’s recognition of Rodriguez.
“We welcome this decision by IMF member states as an important step in Venezuela’s economic stabilization and recovery. The @USTreasury looks forward to Venezuela’s working with the IMF on policies to benefit all Venezuelans, and we will continue to partner with Venezuela as it moves forward on this path,” he added.
After the capture of former Venezuelan dictator Nicolas Maduro, the Trump administration pursued a policy of working with the government already in place, led by Rodriguez, rather than directly supporting the installation of the popular democratic opposition candidate, Maria Corina Machado. Trump’s decision, focused on maintaining stability, has led to the warmest relations between Washington and Caracas in years, with Rodriguez and Trump lavishing praise on each other.
The immediate priority of both countries has been economic recovery, after years of mismanagement and decline resulted in the largest peacetime refugee crisis in the Western Hemisphere’s history. The economic recovery and bolstering of Venezuela’s oil industry has been accompanied by gradual liberalization, with Rodriguez releasing hundreds of political prisoners.
The approach hasn’t been without its critics, however. Carrie Filipetti, the former deputy assistant secretary for Cuba and Venezuela in the Bureau of Western Hemisphere Affairs and the deputy special representative for Venezuela at the U.S. Department of State during the first Trump administration, said there was “no justification” for the IMF’s recognition of Rodriguez’s government.
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“Other than the US recognizing Rodriguez, nothing has changed in terms of the electoral legitimacy of Rodriguez, so this calls into significant question what metrics the IMF uses to ascertain recognition and legitimacy,” Filipetti told the Washington Examiner.
“More importantly, it means the Rodriguez regime, which continues to have leaders both sanctioned and indicted by the U.S. for narcotics trafficking, now has access to nearly $5 billion in assets. Considering this regime is accused of stealing over $300 Billion from the Venezuelan people over the years,” she added, deriding the IMF’s recognition as a “stupid decision with obvious consequences.”