The International Monetary Fund approved a $1.9 billion financing program for Bolivia, including an immediate $214 million disbursement, to support President Rodrigo Paz's economic reforms.
The 36-month arrangement aims to restore macroeconomic stability while protecting vulnerable households. Nearly one year into his term, Paz inherited a massive fiscal deficit, surging inflation, depleted reserves, and declining natural gas production.
The loan deal features disbursements over up to 10 years at an interest rate of 3% to 3.5%, contingent on program reviews. It seeks to rebuild hard-currency reserves, improve public finances, and foster sustainable, inclusive, private sector-led growth.
Nigel Clarke, the IMF's deputy managing director, emphasized fiscal sustainability as the program's central anchor. The IMF also expects the loan program to catalyze around $4 billion in additional financing from other multilateral lenders. Paz has pledged investor-friendly reforms covering hydrocarbons and mining, though bills have yet to reach Congress. The government plans to restructure or close loss-making state-owned companies to reduce the budget deficit.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing