MercoPress. South Atlantic News Agency

IMF “blooper”

The International Monetary Fund, IMF, was involved in a diplomatic “mishap” last week when it became the first multilateral institution in recognizing a Venezuelan government that lasted just over 24 hours.

In the midst of last week's institutional turmoil with street rioting, that apparently had overthrown Venezuela's democratically elected president and former paratrooper Hugo Chaves, the IMF went even further and announced it "was ready to work with the new government in its immediate needs".

Now Mr. Chaves is back in power following strong popular support and what is believed to be an understanding with the Venezuelan Armed Forces regarding some of his most radical initiatives, while Mr. Pedro Carmona the powerful businessman the IMF greeted as the new president, is under house arrest.

However, IMF's Director for Foreign Relations Thomas Dawson also revealed that the allegedly radical and pro-Cuban dictator Fidel Castro, Chaves administration was closely "coordinating" financial aspects with the multilateral organization.

"We hope these contacts continue (with the new government) in the appropriate direction", said Mr. Dawson.

Last February with the local currency under strong speculation, the Chaves administration let the Bolívar float freely loosing between 15 and 20% of its value against the US dollar.

It is estimated that since Mr. Chaves took office in oil rich Venezuela with the support of almost 60% of the electorate, lack of confidence in his economic policies and fear about some of his most radical initiatives have led to the fleeing of over 40 billion US dollars from the country.