Bolivia's Finance Minister Jose Gabriel Espinoza announced the country will meet dollar bond payments to private bondholders this month while pursuing a debt swap with local public institutions. The government plans to convert notes held by domestic entities into local currency debt, a move aimed at easing external payment pressures. This strategy reflects Bolivia's efforts to manage its debt profile amid ongoing economic challenges.

The debt swap initiative targets notes held by local public institutions, shifting them from dollar-denominated obligations to domestic currency. By doing so, Bolivia seeks to reduce its exposure to foreign exchange volatility and external debt servicing costs. The move comes as the country navigates fiscal constraints and aims to stabilize its financial position.

This approach allows Bolivia to maintain its commitments to private bondholders while restructuring its domestic debt obligations. The strategy demonstrates the government's attempt to balance external debt responsibilities with internal financial management, potentially improving its debt sustainability in the medium term.