Skip to content
Subscriber Only

Crucial Loans to Venezuela Are Held Up by Dispute With Congress

  • CAF said to have suspended about $440 million in fresh loans
  • Opposition warns that new lending must be considered illegal

The bitter political standoff between Venezuela’s government and opposition may have cost the crisis-torn country nearly half a billion dollars in loans from one of its last active multilateral lenders as a fourth year of recession grips the economy.

The Development Bank of Latin America, or CAF, is said to be reconsidering whether to issue fresh loans to Venezuela -- a principal member and home to its headquarters -- due to a legal dispute between the National Assembly and the Supreme Court, according to three people with direct knowledge of the matter. As the government struggles to stock store shelves and make good on billions of dollars in bond payments, the opposition-controlled legislature has refused to approve a debt financing law for 2017.