IDB replaces Venezuela’s Maduro representative with Guaido economist
WASHINGTON, (Reuters) - The InterAmerican Development Bank yesterday voted to replace the representative of Venezuelan President Nicolas Maduro with an economist backed by opposition leader Juan Guaido, in a major setback for the Maduro government.
The decision makes the IADB, Latin America’s largest regional lender, the first financial institution to recognize Guaido and would eventually free up development lending to Venezuela if Maduro steps down.
Guaido, who has been recognized as the OPEC country’s legitimate leader by most Western countries, including the United States and many in Latin America, named Harvard University economist Ricardo Hausmann as his representative to the IADB, forcing a vote by the lender’s 48-member board of governors just two weeks before its annual meeting in China.
The United States, which is the IADB’s largest shareholder, has said that billions of dollars of financing from multilateral banks will be needed to rebuild Venezuela’s economy, which has been crippled by hyperinflation, food and medicine shortages, and a collapse of the country’s power grid.
The IADB said in a statement the appointment of Hausmann was effective immediately. A sufficient number of members had voted “to meet the requirements of quorum and favorable votes for a decision,” it said.
The Washington-headquartered lender is led by a former Colombian ambassador to the United States, Luis Moreno.
Hausmann is a former chief economist of the IADB and was previously minister of planning for Venezuela and a member of the country’s central bank board.
Meanwhile, the International Monetary Fund’s 24-member executive board agreed to delay a discussion on recognizing Guaido until next week, board sources with knowledge of discussions told Reuters.
A board meeting, which was scheduled for Thursday, was delayed at the request of several European countries, which needed to consult with their governments, the sources said.
The IMF’s seal of approval for Guaido would further alienate Maduro from the global financial community and allow Venezuela to negotiate a financial lifeline if he steps down.
IMF approval would also allow the World Bank, the world’s largest development institution, to make a decision on Guaido.