International Monetary Fund spokesperson Julie Kozack speaks to reporters at the IMF's headquarters, ahead of the joint IMF-World Bank annual meetings in Marrakech, Morocco taking place on October 9-15, in Washington, U.S. September 28, 2023. REUTERS/Andrea Shalal
WASHINGTON, Jan 15 (Reuters) - The International Monetary Fund said on Thursday that any re-engagement with Venezuela following the U.S. capture of Venezuelan President Nicolas Maduro would depend on member governments representing a majority of IMF voting power recognizing a successor regime.
IMF spokesperson Julie Kozack told a regular news briefing that the Fund would follow the same protocols on engagement with other countries that have had irregular regime changes, and assess whether majority-voting countries recognize Venezuela's legitimate government.
The IMF has not had any engagement with Venezuela since 2019 due to the lack of recognition of Maduro's government. The Fund has not performed an annual "Article IV" assessment of Venezuela's economy since 2004.
But Kozack described Venezuela's economic situation as "dire," with rising poverty.
"Since late 2024 our assessment is that imbalances and vulnerabilities have re emerged, driven by lower oil revenue, a widening fiscal deficit, which has prompted increased monetary financing for the fiscal deficit and a scarcity of US dollar liquidity," Kozack said. "Inflation is estimated to be in the triple digits, and rapid currency depreciation is underway."
(Reporting by David Lawder and Rodrigo Campos)
