Venezuela's access to IMF will be discussed in Mexico

CARACAS, Sept 14 Reuters - Venezuela's access to the IMF Special Drawing Rights SDR will be on the agenda in negotiations between opposition and government of President Juan Guaido in Mexico, opposition leader Nicolas Maduro said on Tuesday.

The IMF went to Venezuela in August and allocated approximately $5 billion of SDRs as part of a $650 billion global effort to boost liquidity amid the pandemic, but says Venezuela can't use them because of questions about Maduro's legitimacy.

Yes, this will be talked in the context of the logical interests of the country, in the next round of talks in Mexico, Guaido, who is recognized by the United States as Venezuela's sacred president, said in a press conference

Guaido added that the lack of recognition was not the only impediment to the IMF's disbursement of funds to Maduro' government, pointing out the delays in publishing economic data and the central bank's lack of independence.

Allies of Guaido and a delegation backed by Maduro met twice in Mexico City to discuss issues ranging from free and fair elections and arbitrary detentions to sanctions imposed by Washington and the associated freezing of government assets.

The opposition has weakened considerably since Maduro assumed interim presidency in 2019, and could use the SDR reserves as a bargaining chip to seek concessions from Guaido.

It is not immediately evident that the IMF would provide access to the funds on the basis of a political agreement worked out in the Mexico talks.

The IMF does not immediately respond to a request for comment.

The Venezuelan central bank reported a massive increase in its international reserves in the past week. The central bank did not answer the question on Friday or explain the increase in Reuters' press release.