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The IMF wants to retake normal relationships with Venezuela

The IMF wants to retake normal relationships with Venezuela

Posted by Dubraswka Aguilar on April 11, 2014

The Managing Director of International Monetary Fund (IMF), Christine Lagarde, said today that she want to return to a normal relationship with Venezuela, and said he would accept an invitation to review the country 's economy. "It really is something that had to be done long ago", Lagarde said in an interview with CNN in Spanish in response to a question about if she sees an opportunity to provide technical assistance to the country.

The head of the IMF said that already performs the "tenth anniversary" of having no revision of the Venezuelan economy, the international body performs regularly at the invitation of the member countries of the institution. In Venezuela ceased to be by not extending invitation to Caracas fund officials to visit the country.

Periodic reviews of the economies of the countries are known in the terminology of the Fund as "Article IV" establishing regular consultations with members of the institution. When a country joins the IMF agree to submit their economic and financial scrutiny of the international community policies. This culminates in surveillance, usually annual, regular consultations with individual countries and the publication of an economic report .

"Venezuela is a member of the institution and look forward to returning to a normal relationship", insisted today Lagarde, adding that the trust is a "two way street".

The IMF forecast this week for the publication of his semi-annual report " Global Economic Prospects " that the economies of Argentina and Venezuela will suffer the sharpest downturns in the region. The agency also stressed that there are "significant uncertainties" in both countries. The IMF forecasts that Venezuela 's economy to contract 0.5% in 2014 and 1% in 2015 , compared to 1% growth in 2013. The report highlights the outflow of capital and high inflation in Venezuela and Argentina and draws attention to the disparity between official exchange rates and what the market believes .

Furthermore, "the measures taken to manage internal and external imbalances, including price controls, exchange rates and trade are damaging confidence and further economic activity" in Argentina and Venezuela, according to the background.

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