News Brief: IMF Management Welcomes Venezuela’s Adjustment Efforts
May 19, 1998
In the context of the ongoing dialogue between the Venezuelan authorities and International Monetary Fund (IMF) management and staff, the Ministers of Finance, Freddy Rojas Parra, and Planning, Teodoro Petkoff, and the President of the Central Bank of Venezuela, Antonio Casas González, visited IMF headquarters on May 19, 1998 to discuss with IMF Managing Director Michel Camdessus recent actions taken by the government and the Central Bank to preserve financial and macroeconomic stability. After analyzing the economic situation and the government’s current and planned policies, IMF management supports Venezuela’s efforts and believes that the authorities have formulated a suitable economic program, which will be monitored by IMF staff. The Executive Board of the IMF will be informed next month of the authorities’ program in the context of the discussion of the 1998 Article IV consultation. The program envisages the implementation of a significant fiscal effort to compensate for the decline in oil revenue; the maintenance of a tight monetary policy; and the deepening of structural reform, including through the establishment of an oil stabilization fund, the modernization of the Customs Office, and the privatization of companies in the aluminum and electricity sectors.