Bolivia approves $1.9 billion IMF deal in hopes of accessing external financing
The 36-month program could unlock more than $5 billion in additional financing from the World Bank, the Inter-American Development Bank and other lenders.
- 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.
42 Articles
42 Articles
The Independent
The Independent (US)Bolivia approves $1.9 billion IMF deal, eliminates diesel subsidies
Bolivia’s conservative government has won congressional backing for an international loan and moved to end diesel subsidies, risking political backlash
The program foresees reforms, spending cuts and an end to fuel subsidies from 2027.
The Bolivian parliament has approved a $1.9 billion IMF aid program to support “the country’s comprehensive economic reform program.” The post Bolivia: Parliament approves $1.9 billion IMF aid program appeared first on in.gr.
A technical team of the multilateral body agreed with the Executive in July to finance 36 months to support economic reforms, which should be ratified by the Parliament. The administration of center-right president Rodrigo Paz, who put an end to almost 20 years of socialist governments led by Evo Morales (2006-2019) and Luis Arce (2020-2025), considers this support key to overcoming the worst economic crisis in Bolivia in four decades. The Senat…
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...
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