The IMF resumed Venezuela ties after a six-year freeze, focusing on data rather than debt relief.

After announcing its resumption of its dealings with Venezuela under acting president Delcy Rodriguez on April 14, the International Monetary Fund plans to take a wait-and-see approach to the Latin American country’s plans to restructure its reported $170 billion in external debt.

The IMF and World Bank halted deals with Venezuela in 2019, citing the government’s failure to provide mandatory economic data and disputing the legitimacy of President Nicolás Maduro’s administration. Venezuela’s reintegration into the global financial system is now underway. The U.S. is helping to facilitate the change following the removal of Maduro in January by U.S. forces, with Vice President Rodriguez as interim leader.

“Restoring fiscal and debt sustainability is obviously a very important priority for Venezuela, and we do stand ready to support the authorities in this very important step that they’re taking,” said Julie Kozack, an IMF spokesperson, during a press briefing. “Typically, when a country chooses to restructure its debt, the discussions are between the country’s authorities and their creditors. The Fund does not participate in those discussions.”

Resuming Business as Usual

The IMF has started regular discussions with the Ministry of Finance and the Banco Central de Venezuela.

“These discussions have focused mostly on the production and provision of economic data,” Kozack said. “Providing and producing this economic data is a requirement under our articles of agreement so that we can assess the macroeconomic developments and provide policy advice ultimately to Venezuela.”

Since the Latin American country resumed work with the IMF, it regained access to its special drawing rights, but the nation has not requested financing from the IMF, said Kozak. “Any financing would require a formal request from the authorities.”

Reaching Debt Sustainability

In the meantime, the Venezuelan government expects to release a macroeconomic framework and debt analysis to the international financial community in June, said the office of the Vice Presidency for Economy in a prepared statement.

“The current debt overhang constrains external financing, limits public investment capacity, and prevents full re-engagement with the international financial system,” wrote the statement’s authors. “It needs to be substantially reduced for Venezuela to engage in a virtuous circle.”

The government plans to normalize the government’s and state oil company PDVSA’s outstanding commercial debt to restore public debt sustainability.

Nic Wirtz contributed to this story