IDB statement on Venezuela
On May 14, Venezuela passed the Inter-American Development Bank’s 180-day limit for payment arrears for an amount of $88.3 million, placing the country in a non-accrual status.
Venezuela’s total loan arrears, including those that have not yet reached the 180-day limit, stand at $212.4 million on a total debt of $2.011 billion. Venezuela’s debt to the IDB represents 1.6% of the Bank’s total assets as of March 31, 2018.
Under the IDB’s guidelines on arrears, the Bank cannot undertake any lending activities concerning Venezuela until its arrears are cleared. As a matter of policy, the Bank does not reschedule its sovereign-guaranteed loans.
The IDB does not expect Venezuela’s non-accrual event to affect the Bank’s 2018 liquidity and capital ratios, which remain strong and in full compliance with its financial policies. The IDB anticipates that the event will not affect its 2018 lending program.
Venezuela, which became a shareholder of the IDB when the institution was founded in 1959, has reiterated its commitment to the IDB and its intention to undertake regular payments. The IDB acknowledges Venezuela’s efforts and will continue to work with its government to resolve the arrears.