The US guarantees the UN that it will protect the humanitarian fund for Venezuela from creditors

The United States has assured the United Nations that it will protect a UN-administered humanitarian fund for Venezuela from creditors, sources familiar with the matter said Thursday, removing a key obstacle to money flowing.

After months of confusion on the issue, the Joe Biden government clarified that the fund, which was agreed in 2022 in negotiations between the administration of Venezuelan President Nicolás Maduro and the opposition, could operate without the risk of creditors seeking to seize the money the fund will receive to collect outstanding debts, the sources said.

Questions about the vulnerability of contributions to the fund, which would handle some $3 billion in frozen accounts abroad, have delayed the creation and implementation of the aid effort for Venezuela.

Representatives of Maduro and the opposition announced an agreement on the fund when a return to negotiations took place in Mexico in November last year in an attempt to advance efforts to organize free elections.

However, talks have stalled and the Maduro government blames the United States for failing to provide guarantees that the fund would be protected, as well as Washington’s continuation of harsh sanctions against Venezuela. The fund is intended to help Venezuelans suffering from a deep economic and social crisis.

According to four sources familiar with the matter, the United States notified the UN earlier this month that the funds would be safe from creditors. It was not immediately clear if this was communicated orally or in writing. The trust that will receive the money is still in the process of being created, said two of the sources consulted.

The White House, the US State Department and the Venezuelan government did not immediately respond to a request for comment.

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