Venezuela failed to provide export and import information to the International Monetary Fund. The IMF Executive Board released a statement on Friday on the failure of the Venezuelan government to meet specific requirements of membership.
“The Board approved a decision that finds Venezuela in breach of its obligation under Article VIII, Section 5 of the Fund’s Articles of Agreement for the failure to provide, by the required date, certain data on the operations of the social security institute and on total exports and imports of merchandise, in terms of local currency values, according to countries of destination and origin,” said the Executive Board in the statement.
The Board will meet again in six months to evaluate Venezuela’s efforts to comply with its IMF membership requirements.
The decision by the board was not unanimous, reports Reuters. Russia, an ally of Venezuela, objected and two other board members abstained.
The move by the IMF comes as Venezuela faces a major debt repayment crisis. The Nicolás Maduro government was narrowly able to make a payment on the country’s external debt obligations last week.
President Maduro announced on Thursday that he plans to restructure Venezuela’s existing $120 billion in debt, reports CNBC. After Maduro’s announcement, bonds set to mature in October 2019 fell from 48 to 37 cents on the dollar.
Sanctions by the United States further complicates matters for the Maduro government. The sanctions targeted individuals within the government, including Vice President Tareck El Aissami who was tasked by President Maduro with the task of restructuring Venezuela’s external debt.
The sanctions also prohibit entities in the United States from trading in new debt by the Venezuelan government or the state-run oil company, PDVSA.