Inter-American Development Bank seeks $2.5 billion loan for Venezuela

Ilan Goldfajn, president of the Inter-American Development Bank (IDB), is working to secure approval for a $2.5 billion loan for Venezuela. The proposal is part of a two-year strategy designed to address the country's technical and humanitarian emergencies, with funds primarily intended to restore the national electricity grid and meet priority social needs.

The proposal has met resistance within the IDB Board of Directors. Some members have expressed concern regarding the decision to provide significant financing to Caracas without simultaneous technical support or participation from other multilateral lenders, such as the International Monetary Fund or the World Bank.

The IDB has suspended new lending to Venezuela since May 2018 due to payment arrears. As of the end of 2025, Venezuela's outstanding debt in principal and interest to the bank amounted to approximately $2.187 billion, with over $2.048 billion being more than 180 days overdue. Under current bank policy, this debt cannot be renegotiated or restructured, and new lending activities typically cannot begin until arrears are resolved.