Economists Urge End to Sanctions as Venezuelan Quake Toll Mounts

The June 24 disaster, centered in Yaracuy with twin 7.2 and 7.5 magnitude tremors, has left tens of thousands missing and crippled infrastructure already strained by years of economic isolation. Experts including Jeffrey Sachs and Jayati Ghosh contend that existing asset freezes and export controls prevent the government from accessing vital resources, effectively forcing the population to endure both a natural catastrophe and a man-made liquidity crisis.

The Case for Debt Relief and Asset Unfreezing

While the United States has pledged $300 million in aid and issued limited relief waivers, signatories argue this is a fraction of the required $37 billion reconstruction cost. The group is calling on the Trump administration to issue a Section 25B certification, enabling the Central Bank of Venezuela to access its accounts at the Federal Reserve. Parallel demands are directed at the United Kingdom to unfreeze $5 billion in gold reserves held at the Bank of England and at Portugal to release $1.2 billion in assets held by Novo Banco.

Beyond immediate liquidity, the scholars advocate for a coordinated debt jubilee, urging the IMF to provide a $4 billion rapid financing instrument without conditions. They maintain that prioritizing debt servicing over the reconstruction of hospitals, schools, and water grids during a humanitarian emergency is untenable. By their assessment, the current policy of economic coercion indiscriminately disables payment systems and supply chains, ensuring that the burden of recovery falls squarely on the most vulnerable citizens rather than political leadership.