Bolivia Slashes External Financing Expectations Amid Social Unrest
Bolivia has reduced its expected external financing to $5 billion, down from an initial $9 billion, due to ongoing social unrest. Economy Minister Jose Espinoza mentioned that negotiations with the IMF are advanced. An IMF deal could unlock additional credits and mark a policy shift in Bolivia.
Bolivia has significantly reduced its external financing expectations for 2023 from $9 billion to around $5 billion. This adjustment comes amid ongoing social unrest that has impacted the country's supply chains and trade activities.
The Economy Minister Jose Gabriel Espinoza announced that negotiations with the International Monetary Fund (IMF) are well advanced. An agreement could potentially provide Bolivia with $2 billion to $2.5 billion, unlocking further financial support from institutions like the World Bank and the Inter-American Development Bank.
The potential IMF deal marks a significant shift in Bolivia's economic policy after two decades of limited relations with the fund. Despite the social conflicts, the government managed to place $1 billion in sovereign bonds, indicating a proactive response to the financial challenges.
(With inputs from agencies.)
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