Interim government taps reserve assets as death toll climbs past 2,500 and criticism mounts over early response delays.
Venezuela’s interim authorities have launched a $200 million reconstruction fund with support from the International Monetary Fund (IMF) to help rebuild homes, hospitals and infrastructure devastated by twin powerful earthquakes that struck the country last week.
Interim President Delcy Rodríguez announced the initiative on state television, saying the fund would draw on Venezuela’s Special Drawing Rights (SDR) holdings at the IMF-part of roughly $4.5 billion in reserve assets the country has accumulated. The money will be channelled through audited contractors to reconstruct housing and key public facilities, she said.
The earthquakes, measuring 7.2 and 7.5 in magnitude, struck northwestern and central Venezuela on June 24, levelling buildings in Caracas, La Guaira and surrounding areas. Officials report at least 2,595 people killed, more than 12,400 injured, and tens of thousands still unaccounted for. Up to 6.76 million people could be affected, according to the International Organization for Migration (IOM).
Political transition and crisis response:
The quakes hit amid Venezuela’s fragile political transition. Rodríguez assumed the role of acting president earlier this year following the ouster of longtime leader Nicolás Maduro. The government has deployed thousands of officials and emergency personnel, but survivors and journalists have criticised delays in aid delivery during the critical first 72 hours.
At a recent news conference, Rodríguez defended the government’s efforts while announcing the IMF-supported fund. She emphasised that funds would go directly to rebuilding lost homes, rejecting accusations of inadequate initial response.
International aid has begun arriving from various sources, including US troops, humanitarian organisations such as Samaritan’s Purse, and rescue teams from El Salvador and Chile. The World Bank and IMF have also signalled readiness to support recovery assessments.
Venezuela Faces Long Recovery:
Early estimates suggest the earthquakes could cost up to 7 percent of Venezuela’s GDP, compounding years of economic hardship. The destruction of nearly 189 buildings has left thousands homeless and disrupted essential services.
Economists note that accessing IMF resources represents a pragmatic step for a country with limited fiscal space, though questions remain about oversight, transparency and the speed of implementation in a nation still recovering from prolonged political and economic turmoil.
The fund announcement comes as schools remain closed, with some buildings repurposed as shelters, and the Caracas Metro suspended. Gas supplies were temporarily cut off to prevent explosions in damaged structures.
Regional development bank CAF has also opened a parallel $200 million multi-donor recovery fund, underscoring growing international interest in supporting Venezuela’s reconstruction.