IDB President Pushes $2.5 Billion Venezuela Loan Amid Board Pushback

The Inter-American Development Bank is seeking board approval for a $2.5 billion loan to Venezuela, its first new lending to Caracas since May 2018, but faces resistance from some board members over repayment concerns, two sources told Reuters. IDB President Ilan Goldfajn has encountered apprehension about the pace of the process and whether other multilateral lenders will commit to ensure Venezuela can repay, one source said. The IDB declined to comment; Venezuela's government did not respond. The loan would fall under a Special Development Lending arrangement, capped at $500 million under IDB rules, requiring waivers for both the size and Venezuela's lack of an IMF program. Approval ultimately rests with the 14-member Executive Board, where the US holds 30% of voting power, followed by Argentina and Brazil at 11.35% each. Venezuela owes the IDB over $2 billion in arrears, which could be cleared via a third-party bridge loan. Analysts estimate the country's total debt restructuring could exceed $200 billion.