IMF monitoring Venezuela after quake

Washington, June 25 (IANS) The International Monetary Fund (IMF) on Thursday expressed sympathy for the victims of the devastating earthquake in Venezuela and said it was working closely with the country's authorities to assess the economic impact of the disaster and determine the best way to support recovery efforts.

Speaking at a regular IMF press briefing, Julie Kozack, Director of the IMF's Communications Department, said it was too early to determine the scale of any IMF assistance as officials continued to evaluate the country's needs.

"We're deeply saddened by the impact of the earthquake on Venezuela. We express our deep sympathy to all of those affected, and our thoughts are with the people of Venezuela at this very difficult time for the country," Kozack said.

She said the Fund was maintaining close contact with Venezuelan authorities following the disaster.

"We've been closely engaged with the Venezuelan authorities, and we will remain closely engaged with them as they assess the economic impact and the recovery needs for Venezuela," Kozack said.

Asked whether the IMF would make emergency resources immediately available, Kozack said discussions were still at an early stage.

Responding to questions about Venezuela's recently announced debt restructuring, Kozack said the IMF was not participating in negotiations between the government and its creditors.

"So far, the Fund has not been involved in the debt restructuring process that has been announced by Venezuela," she said.

She added that the IMF maintained regular engagement with the authorities on the country's macroeconomic outlook and "stand ready to assist the authorities as needed."

Kozack explained that while debt restructuring often takes place under an IMF-supported programme, that was not always the case.

"The IMF is never a party to the negotiations and the discussion," she said.

Instead, the Fund typically provides a macroeconomic framework and debt sustainability analysis to assess whether any agreement between a government and its creditors can restore long-term debt sustainability.

"In this case, it's a bit different," Kozack said, noting that the IMF remained ready to assist Venezuelan authorities as needed during the restructuring process.

--IANS

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