The FMI does not grant Venezuela USD 5,100 million in special giro rights because it does not recognize the Maduro regime

The International Monetary Fund is noting USD 5,100 million in special giro funds in Venezuela to withdraw its reserves as part of a massive injection of resources into member countries debited and currently not receiving the regime of Nicolás Maduro as the legitimate governor of the Caribbean.

In theory, Venezuela figures among the major beneficiaries in terms of percentage of gross domestic product of a proposal for USD 650,000 million in special giro funds (DEG) that, to be approved, the IMF will enter countries to boost global liquidity. It is part of an effort to help emerging nations and many nations suffer with the increase of debt and covid-19.

Republican members of the United States Congressional Congress, including Senators Pat Toomey and John Kennedy, joined the Treasury Secretary, Janet Yellen, to oppose the creation of the reserves, claiming to be compensating Maduro, among other state attorneys.

Peru Venezuela will not be able to access the assets that the Mayor of the nations receives through a transfer to its central banks and is approved by the Fund Governor’s in the next months, according to the IMF. It is said that the EU and more than 50 countries considered Juan Guaidó, as the legitimate president of the nation, after the 2018 presidential elections, are considered fraudulent by the good of the international community.

“The political crisis in the course of Venezuela has led to a lack of clarity in the international community, as reflected in the IMF membership, with respect to the official reconciliation of the Government”, by Gerry Rice, spokesman for the IMF, in response to questions from Bloomberg News.

Venezuela has not been a member of the DEG and has no use of otras “hasta que se reconozca a un Gobierno”, dijo Rys.

This decision is the most recent review of the Maduro regime, which in part has been the result of a global financial redemption debt to the EU sanctions. Despite years of economic contraction, a collapse in petroleum prices, the IMF’s financial assistance of USD 5,100 million is equivalent to 81% of current international reserves in the country.

Officials of the Maduro regime are considering inviting FMI officials to inspect Gobierno’s economic data, a step in the right direction under Article IV, in aras de repair the relationship after not publishing economic data for 14 years. It has resulted in the Mayor of the Tuviesen economists adding the alliance of the nation’s economic collapse, following three people with the knowledge of the past.

However, given that Maduro’s regime is prohibited from having any contact, discussions on the FMI’s access to finance have been discussed with the official Government, the evaluation of Article IV could not be carried out at this time.

If the FMI suspends Venezuela’s access to the DEG in 2019 due to political chaos, relations between the two parties will be strained for a long time. In 2007, Hugo Chávez, the party’s president, called for a compromise in the Washington laser with the Washington organization, arguing that the Fund serves the interests of the United States.

“It’s the kind of initiative that a country like Venezuela can approve much to tackle the crisis,” said Temir Porras, ex-economic assessor for Chávez and Maduro. “It is an opportunity to see things with a more pragmatic angle, not only to meet the needs of immediate health, but to contribute to the stabilization of our economy”.

Venezuela’s DEG tenancies have risen more than 99% since their last month’s level, up to USD 12.5 million from USD 3,600 million in 2009, when they received reserves during the global financial crisis, according to IMF data. More than three thirds of Venezuela’s international reserves are concerned that it has been difficult to sell the United States-imposed sanctions.

With information from Bloomberg

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