Venezuela’s President Nicolas Maduro has requested $5bn in aid from the International Monetary Fund (IMF) after ordering a nationwide quarantine due to the spread of virus through the poverty-stricken country.
Venezuela is one of the poorest nations in the western hemisphere.
The (IMF) has rejected Venezuela’s request for a $5 billion loan to help it cope with the coronavirus pandemic.
Venezuela became the first country to request an emergency loan from the IMF.
There are international concerns that its ravaged economy and public services will not cope with the spread of the virus.
However, the IMF rebuffed the request, claiming a lack of certainty over the legitimacy of President Nicolas Maduro’s government.
“Unfortunately, the Fund is not in a position to consider this request,” because there is “no clarity” on international recognition of the country’s government,” the Washington-based institution said.
IMF engagement with member countries is predicated on official government recognition by the international community, as reflected in the IMF’s membership, according to the Daily Telegraph.
“There is no clarity on recognition at this time,” IMF said.
President Maduro is not recognized as the country’s leader by the West. The successor to Hugo Chávez is resisting a challenge to his rule by Juan Guaidó, an opposition leader backed by the United States and 50 other countries. The US, the largest shareholder of the IMF, has a veto over its coronavirus aid measures.
Guaido, who declared himself acting president, branded President Maduro a usurper over his 2018 re-election in polls widely seen as fraudulent.
US sanctions and other international pressure have failed to dislodge President Maduro, who is backed by Venezuela’s creditors, China and Russia and retains the support of the powerful military.
Maduro ordered a nationwide quarantine after the number of people infected with the virus nearly doubled to 33 on Monday.
