The World Bank is considering up to $5 billion in loans for Venezuela over the next two years, marking a major shift in relations with the crisis-hit nation. Susana Cordeiro Guerra, the bank’s vice president for Latin America and the Caribbean, confirmed the lender is assessing support for Venezuela’s priorities “if the conditions are right.” The financing would target infrastructure and social sectors, with an initial $500 million operation focused on water and electricity projects. The bank could also lend up to $2 billion in the first year if Venezuela clears arrears with other multilateral lenders.
The last loan to Venezuela was in 2005. The country owes over $2 billion to the Inter-American Development Bank and is also in arrears with the Development Bank of Latin America. Any support requires executive board approval.
The World Bank and IMF resumed engagement with Venezuela in April under acting president Delcy Rodríguez. The bank plans to open an office in Caracas by year-end and is working on a macro-fiscal framework and debt restructuring, with private estimates placing Venezuela’s debt at around $170 billion. The bank is also preparing lending packages for Colombia, Argentina, and Barbados, emphasizing support for reformist governments.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing