The IMF resumed dealings with Venezuela in April after a seven-year pause, allowing it to restart regular engagement, including economic surveillance and capacity development. IMF officials have begun working with Venezuela’s finance ministry and central bank to rebuild the economic data needed to assess the country’s financial position. The Fund has said Venezuela has not yet requested IMF financing.

At the same time, Venezuela has begun one of the largest and most complicated sovereign debt restructurings in the emerging markets. The government launched the process for its own and state oil company PDVSA’s debt in May, with total liabilities estimated at more than $150 billion and roughly $60 billion in defaulted bonds.

That process matters well beyond the bond market. The eventual treatment of sovereign and PDVSA claims could influence how investors price Venezuela’s broader country risk, including the cost of capital for new projects and the prospects for financing in the energy sector. The creditor landscape is already evolving: Greylock Capital stepped back from the steering committee of the Venezuela Creditor Committee in June, while remaining part of the wider group that includes Fidelity, T. Rowe Price and Morgan Stanley Investment Management.

The World Bank’s return adds another piece to that financial reopening. The institution also resumed dealings with Venezuela in April, after its last loan to the country was made in 2005. While new financing is not yet a given, renewed engagement creates a channel for technical assistance and, subject to the necessary conditions, future development support.

For investors, the key shift is that Venezuela is rebuilding the financial channels needed to support new capital. Reliable economic data, progress on the debt restructuring and renewed engagement with international financial institutions could give investors greater clarity on risk and make it easier to assess and structure new transactions.

That financial re-engagement will be a key part of the agenda at Venezuela Energy Week 2027, where energy companies, investors, financial institutions, creditors and government stakeholders will examine how Venezuela’s evolving financial position affects the next generation of energy projects and investment opportunities.

Venezuela Energy Week 2027 will take place at the Simón Bolívar Convention Center in Caracas from February 22-25, bringing the financial and energy communities together as the country works to reconnect with global capital. For a market where access to capital has been one of the biggest constraints on development, the terms of that reconnection could be as important as the resources themselves.

Our thoughts are with the people and communities affected by the recent earthquakes in Venezuela. As the country begins the long process of recovery, we encourage members of the global energy community to support relief and reconstruction efforts through the CAF Recovery and Reconstruction Fund for Venezuela, which channels contributions from individuals, companies and organizations to emergency assistance, essential services and long-term rebuilding efforts.

To learn more or make a contribution, please visit the CAF Recovery and Reconstruction Fund for Venezuela.