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Venezuela Leadership Circulate Still Blocking IMF, World Bank Aid

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Venezuela Leadership Circulate Still Blocking IMF, World Bank Aid

International Monetary Fund (IMF) and World Bank investors are still uncertain on whether to acknowledge Venezuelan opposition Chief Juan Guaido as the nation’s leader, the institutions stated on Thursday.

The heads of the IMF and World Bank both stated that they are arranging to move quickly to help allay Venezuela’s decaying humanitarian crisis; however, the leadership question is still under the way.

IMF Managing Director Christine Lagarde during a press conference and before the start of the IMF and World Bank spring meetings in Washington stated that it is for their members to announce which authority they are acknowledging diplomatically so that they can follow through.

Over 50 nations, which include the United States and Venezuela’s largest neighbours, have acknowledged Guaido, the head of the National Assembly, as the South American country’s leader. Russia and others decline that claim and acknowledge Nicolas Maduro, long-time president and heir to the late Hugo Chavez, as the lawful head of state.

A simple majority of member votes could determine who the official deputy from a nation to the IMF is and a demand for such a vote would have to come from the IMF’s leadership. Till now, there have been no declarations in that regard.

Depending on the nations which have publicly backed Guaido or Maduro as the legitimate leader of Venezuela, and their voting weighting inside the World Bank and the IMF, Guaido’s representative could get over half the votes.

Public backing from a government for Guaido does not necessarily signify that nation would vote for his representative at the IMF, and even a minor majority would not automatically move the traditionally consensus-driven bank to act.

The United States has easily biggest percentage of voting power both at the World Bank and the IMF for any single member, with nearly 16% of the vote at both institutions. The Inter-American Development Bank last month acknowledged Guaido appointee Ricardo Hausmann as Venezuela’s representative.

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