April 16 (Reuters) – The International Monetary Fund said on Thursday it has resumed its dealings with Venezuela, which had been paused for more than six years due to government recognition issues.
IMF Managing Director Kristalina Georgieva said the fund is now dealing with the government of Venezuela, under the administration of the South American nation’s interim President Delcy Rodriguez.
The fund last month said it was beginning to re-engage with Venezuela, starting by collecting basic data and assessing the economy after years of gaps.
Investors have bet big on Venezuela’s bonds in hopes that the change in government can enable a debt restructuring – something that is typically underpinned by a new IMF lending program – and the data that comes with it regarding what level of debt is sustainable for a country. The IMF has not published a full economic assessment on Venezuela since 2004.
The resumption of a formal relationship comes after U.S. President Donald Trump’s administration in January ousted President Nicolas Maduro in a raid on Caracas. Since then, Washington has been working with Rodriguez and is looking to expand U.S. presence in Venezuela’s oil and mining sectors.
(Reporting by Mrinmay Dey and Daina Beth Solomon in Mexico City; Editing by Chris Reese and Iñigo Alexander)
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