U.S. Treasury Weighs Bridge Loan to Help Venezuela Repay $2.3 Billion IDB Debt

According to Jin10, the U.S. Treasury is considering a short-term bridge loan to help Venezuela repay about $2.3 billion in debt owed to the Inter-American Development Bank (IDB) and restore its eligibility for financing. The IDB approved resuming engagement with Venezuela on Friday. After the debt is repaid, Venezuela could receive up to $6 billion in IDB loans over the next two years, while the World Bank could also provide up to $5 billion during the same period. The U.S. plan would provide funds to the IDB through an overnight financing arrangement rather than directly to Venezuela. The proposal could draw attention from Congress. Democratic Senator Elizabeth Warren previously opposed using the Exchange Stabilization Fund to guarantee financial institutions investing in Venezuela.