Bolivia approves $1.9 billion IMF deal in hopes of accessing external financing
The 36-month IMF program requires fiscal cuts, a more flexible exchange rate and an end to fuel subsidies in the 2027 budget.
- On Thursday, Bolivia's Chamber of Deputies approved a $1.9 billion credit agreement with the International Monetary Fund, passed by more than two-thirds to address fiscal deterioration and currency shortages.
- Facing foreign currency shortages and declining reserves, the government inherited an economy with $3.17 billion in net international reserves, of which only $52 million consisted of liquid assets.
- The agreement requires implementing a stabilization program that includes enforcing greater monetary discipline, adopting a flexible exchange rate regime, and eliminating government fuel subsidies.
- Approval facilitates access to more than $5 billion in additional funds from institutions including the World Bank and the Inter-American Development Bank , essential for broader recovery.
- Plans to reduce the fiscal deficit from 9.1% of Gross Domestic Product in 2026 to 3.8% by 2028 anchor the consolidation; the 2027 budget requires no fuel subsidies.
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26 Articles
My Mother Lode
The Seattle TimesBolivia’s Congress approves $1.9 billion IMF deal, triggering threats of unrest
LA PAZ, Bolivia (AP) — Bolivian lawmakers approved a $1.9 billion loan agreement with the International Monetary Fund on Friday, delivering the conservative government a key victory in its efforts to ease the country’s deep economic crisis as unions threatened renewed protests. The Senate ratified the IMF agreement a day after the lower house approved...
Associated Press News
Bolivia's Congress approves $1.9 billion IMF deal, triggering threats of unrest
In a key victory, Bolivia’s conservative government has secured lawmakers’ backing for a major international loan as unions threaten fresh protests.
(Mexico City = Yonhap News) Correspondent Song Gwang-ho = Bolivia, suffering from a chronic shortage of foreign currency and deteriorating finances, [applied] from the International Monetary Fund (IMF) to revitalize its economy...
Bolivia approves $1.9 billion IMF deal in hopes of accessing external financing
Bolivian lawmakers approved an agreement on Friday that will allow the South American country to access $1.9 billion in financing from the International Monetary Fund (IMF), as the government of President Rodrigo Paz faces foreign currency shortages, fiscal deterioration and declining international reserves.
Economic analysts warned of the risks that Bolivia will face due to the demands that the International Monetary Fund (IMF) intends to impose for the country to access a credit of 1.9 billion dollars, including the elimination of the subsidy to fuels, electricity and gas, and the suspension of controls [...]
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