IDB head seeks $2.5 billion Venezuela loan amid board pushback

Key facts

• IDB President Ilan Goldfajn is working on a $2.5 billion loan for Venezuela.
• Some IDB board members are pushing back against the loan.
• Concerns stem from pursuing lending without parallel work from other multilateral lenders.
• The IDB halted new loans to Venezuela in May 2018 due to payment arrears.

Inter-American Development Bank (IDB) President Ilan Goldfajn is reportedly working to secure approval for a $2.5 billion loan to Venezuela. However, the initiative has encountered resistance from some members of the IDB's board, according to sources familiar with the matter. The board's concerns reportedly center on the bank pursuing this lending without the typical parallel engagement from other multilateral lenders, despite acknowledging the benefits of re-establishing ties with Venezuela. The IDB has not provided new loans to the South American nation since May 2018, when Venezuela fell behind on its payment obligations. Venezuela has disclosed obligations totaling approximately $240 billion, making it the largest sovereign debt restructuring in history. This debt includes an estimated $150 billion to $170 billion in external sovereign bonds and debt linked to its state oil company, PDVSA. The U.S. Treasury has issued authorizations, such as General License 58, to permit financial advisory services related to Venezuela's restructuring, easing some sanctions-related barriers for U.S. firms.