CentAm and Caribbean at risk from Venezuelan crisis - IMF
If Venezuela's political and economic crisis intensifies, it will likely impact the financial fortunes of several Central American and Caribbean nations, according to the IMF.
Following months of protests, which led Venezuelan President Maduro to denounce a "coup," opposition leaders have been arrested and the country's economy has continued to deteriorate.
In the IMF's latest regional economic outlook, economist Sebastián Sosa said that after a decade in which Venezuela provided financial support to many of its neighbors through favorable energy cooperation agreements, some countries have become highly dependent on this avenue of financing.
The IMF economist's work lists Nicaragua and Haiti as the most exposed, with Nicaragua's stock of debt to Venezuela representing 20% of its GDP and Haiti's representing 15%.
Other countries with a sizable exposure include Guyana, Jamaica and most of the Eastern Caribbean Currency Union (ECCU) member countries.
"A sudden interruption of these agreements," warns the IMF, "or an abrupt change in their conditions, would create significant balance of payments problems for the recipient country, which would have to find alternative sources of external financing."
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