IDB suspends loans for Venezuela

The Inter-American Development Bank (IDB) announced the suspension of loans for Venezuela due to the delay in the payment of a debt of 88.3 million dollars, which leaves without an important source of regional financing to the South American country burdened by a complex economic crisis.

The international body took the measure after Venezuela reached the limit of 180 days of default established by the rules, said a statement that was released on Tuesday on its website. “The Bank can not carry out any loan activity with Venezuela until its arrears are paid,” the report states.

Venezuela has a total debt with the IDB of 2,011 million dollars, of which 212.4 million dollars are in default but only one portion exceeded the delay limit, the agency said.

Several international creditors of Venezuela have pointed the country in incurring in debt payment defaults and some have filed lawsuits in courts to get the cancellation of their investments. The Venezuelan authorities have rejected the actions of their creditors and have blamed the United States for its financial difficulties and have accused it of maintaining a “financial siege” to the oil country.

Venezuela is plunged into a complex crisis with hyperinflation, a growing shortage of food and medicines, and a severe economic contraction, a situation that threatens to worsen in the face of financial difficulties and the fall in production faced by the state corporation Petroleos de Venezuela S.A. (PDVSA), economic heart of the country.

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