Venezuelan government, opposition reach agreement to establish humanitarian fund for resolving political crisis

On Saturday, the Venezuelan government and opposition reached an agreement to establish a humanitarian fund to assist the nation in resolving its protracted political crisis.

Programs for the disadvantaged in the areas of health, nutrition and education will be funded by the UN-managed fund. The money will come from Venezuela's frozen assets in international banks, which total more than $3 billion (€2.88 billion) and are expected to gradually unfreeze as a result of the agreement.

Representatives for President Nicolas Maduro and the opposition, which included the group backed by the US and led by Acting President of Venezuela, Juan Guaido, signed the deal in Mexico City. US President Joe Biden's administration responded by loosening some oil restrictions, enabling energy giant ‘Chevron’ to continue operations in the oil-rich South American nation and import Venezuelan crude back into the US.


The money made from selling electricity will be used to settle Venezuela's debt to Chevron. The accord was praised as a "historic milestone" by the Norwegian mediator Dag Nylander, who also noted that Venezuelans alone could end the country's predicament.

Since Maduro declared himself the winner of the hotly contested 2018 elections, which were mostly regarded as fraudulent, Venezuela's protracted political crisis has gotten worse.



Juan Guaido, the head of the opposition, was recognised as the nation's legitimate leader by dozens of nations, including the US, Canada, and the EU. The administration of Donald Trump increased economic penalties against Maduro's regime and gave Guaido the right to seize control of Caracas's bank accounts in US financial institutions.

Due to the sanctions, high inflation rate was witnessed, which led to a lack of food and medication.

According to UN estimates, more than 7.1 million Venezuelans have left the nation, with many of them moving to other countries in Latin America or the US.

It is believed that the humanitarian fund will aid in stopping Venezuelans from fleeing by enhancing access to food, medicine and healthcare services and funding infrastructure initiatives to restore the nation's energy grid.

The approval of the fund is subject to the outcome of the 2024 presidential elections and the situation of numerous political prisoners. These topics will not be touched during this round of negotiations, the first in more than a year, as Maduro's representatives left when businessman Alex Saab was extradited from Cape Verde to the US on suspicion of money laundering.

FAQs:

1. What is the international standard for extreme poverty?
   An international standard for extreme poverty is less than $1.90 per day.
2. What caused the approval of the fund?
   The approval of the fund is subject to the outcome of the 2024 presidential elections and the situation of numerous political prisoners.