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IMF rejects emergency aid to Venezuela | TIME ONLINE


The International Monetary Fund [IMF] refuses to help Venezuela, which is badly hit economically, with an emergency loan worth billions. The Venezuelan government's request could not be taken into account because there is no clarity among the 189 IMF member states as to who is considered the legitimate governance of the South American country, a spokesman for the Monetary Fund said.

"Unfortunately, the fund is unable to examine this application. As we mentioned earlier, the IMF's engagement in member countries is based on the government's official recognition by the international community," the IMF statement said. "There is currently no clarity about the recognition."

In Venezuela Political uncertainty has prevailed since opposition leader Juan Guaidó declared himself the new interim president in January. He fights for power with long-time President Nicolás Maduro. Guaidó
is recognized by more than 50 countries.

Maduro had always demonized the IMF

Maduro had with IMF applied for an emergency loan of $ 5 billion. As far as is known, Venezuela was the first country to take advantage of new IMF assistance. The Monetary Fund has provided more than $ 50 billion in emergency aid to mitigate the economic impact of the coronavirus pandemic in developing and emerging countries.

Venezuela's economy has been in crisis for years, which is also due to US sanctions against the country's oil industry. Millions of Venezuelans have fled abroad because food is scarce and more expensive than almost anywhere else in the world.

Maduro’s request for help from IMF Director Kristalina Georgieva on Tuesday is also remarkable because Maduro has always demonized the IMF. The fact that he is now applying for an emergency loan shows how badly Venezuela's finances are. Venezuela has 33 confirmed coronavirus cases to date.


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