The Inter-American Development Bank (IDB) announced this Friday the formal resumption of operations at its representative office in Caracas, ending a seven-year period of inactivity on the ground.

In an official statement, the institution said that the reactivation seeks to strengthen the organization’s presence in the country.

The move comes after the restoration of bilateral ties that began in June, when the bank’s board approved the designation of Calixto Ortega as governor to the entity by the administration of the acting president, Delcy Rodríguez.

The multilateral’s operations in Venezuela had been suspended since May 2018, when the institution halted the flow of loans due to the accumulation of overdue payments totaling 88.3 million dollars. The situation worsened in 2019 following the nonrecognition of the executive authorities.

In this new phase, the bank approved an initial allocation of one million dollars for damage assessment and humanitarian assistance following the earthquakes of June 24.

However, at the macroeconomic level, the IDB’s bylaws stipulate that development financing programs can be restarted only after renegotiating the debt owed to the institution.

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