Exclusive-IDB drafts two-year Venezuela plan, says electricity and social needs are key

The Inter-American Development Bank (IDB) is crafting a two-year engagement plan for Venezuela, with a focus on electricity and social protection, according to IDB President Ilan Goldfajn. Goldfajn told Reuters that the bank is "reengaging" with Venezuela, conducting missions to assess the situation and develop an engagement note outlining their proposed actions over the next two years.

The IDB, the largest development lender in Latin America and the Caribbean, ceased providing new loans to Venezuela in May 2018 due to the country's failure to repay its debts. At present, the IDB holds approximately $2 billion in outstanding loans to Venezuela. Goldfajn did not disclose how Venezuela's arrears would be addressed or when financing might resume.

Instead of preparing a debt-sustainability analysis, the IDB is concentrating on Venezuela's macroeconomic framework and addressing individual sector requirements.