Venezuela eyes Qatar bridge loan to clear IDB arrears, sources say

Key facts

• Venezuela owes over $2 billion in arrears to the IDB.
• A bridge loan from Qatar is being considered to clear these arrears.
• Clearing arrears would unlock new financing from the IDB.
• The IDB ceased new loans to Venezuela in May 2018 due to missed payments.
• The US has suggested the IDB assist in recovering Venezuela's power sector.

Venezuelan authorities are considering a bridge loan from Qatar to settle over $2 billion in overdue payments to the Inter-American Development Bank, according to six sources familiar with the matter. This move could enable Venezuela to resume receiving financing from the IDB, which halted new loans in May 2018 due to the country's arrears. The funds are intended to help revive the nation's power grid and infrastructure, which have suffered from years of underinvestment. The US has reportedly suggested the IDB's involvement in restoring Venezuela's power sector. The IDB recently reopened its Caracas office and met with government officials and business leaders.