The International Monetary Fund (IMF) and the World Bank announced they resumed engagement with Venezuela, a development that could pave the way for the country to receive international funding the first time in several years.
CNBC noted that engagement with the country had stopped in 2019 due to issues related to the recognition of the government as lawful.
Now, the IMF could conduct its first assessment of the country's economy in about 20 years and potentially unlock billions of dollars resulting from frozen special drawing rights. JPMorgan estimated the figure at about $5 billion.
IMF Managing Director Kristalina Georgieva said in a statement that the organization is now dealing with interim President Delcy Rodriguez.
The development is part of a broader return of Venezuela to the global economy following the U.S.'s capture of authoritarian President Nicolas Maduro in January.
Earlier this week the U.S. eased sanctions on the country's state-run financial system, allowing key institutions to resume using U.S. currency and access global markets.
The decision, announced by the U.S. Treasury, enables Venezuela's government-run banks to directly receive billions of dollars in oil revenue and reenter the U.S.-controlled financial system, a move aimed at easing pressure on the country's struggling economy.
The step is also expected to support the administration of Rodríguez, which has faced growing unrest in recent weeks. Public-sector workers have taken to the streets in Caracas demanding higher wages, with many earning about $160 a month, well below private-sector pay levels, according to Associated Press.
Rodríguez last month said wages would increase from May 1 and on Monday urged Venezuelans to push for sanctions relief. The latest Treasury action appears to address some of those constraints without fully lifting restrictions.
Washington has also helped the Venezuelan administration by expanding authorizations for American companies to engage with the country's energy sector. Oil major Chevron this week reached an agreement to increase production in Venezuela, as reported by Axios.
The U.S. has also backed arrangements to increase Venezuelan gold sales in American markets and has lifted some individual sanctions, including those targeting Rodríguez.
