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Venezuela Cut Off From Share of IMF’s $650 Billion New Reserves

  • Maduro regime seeking to tap $5.1 billion in expected IMF SDRs
  • Disputed legitimacy prevents government from accessing assets
Pedestrians pass a mural of Nicolas Maduro in the Petare neighborhood of Caracas.
Pedestrians pass a mural of Nicolas Maduro in the Petare neighborhood of Caracas.Photographer: Carlos Becerra/Bloomberg

The International Monetary Fund won’t hand over $5 billion of special drawing rights to Venezuela to bolster its reserves as part of a massive injection of resources to member nations, due to an ongoing dispute over whether President Nicolas Maduro is the legitimate leader of the country.

Venezuela in theory would be among the biggest recipients in terms of percentage of gross domestic product of a proposed $650 billion in special drawing rights that the IMF is planning to give countries to boost global liquidity. This is part of an effort to help emerging and low-income nations deal with mounting debt and Covid-19.