March 5, 2021

The Bolivian Government applies by decree an IMF loan of 327 million

The interim government of Bolivia decided to apply by decree a credit from the International Monetary Fund (IMF) for 327 million dollars, aimed especially at fighting COVID-19, after it was rejected in the country’s Parliament.

A decree published last night states that these funds will be “destined to cover the urgent fiscal and balance of payments needs, associated with the increase in health spending and the deterioration of the terms of trade, as a result of the coronavirus outbreak.”

The amount will go to the State Treasury, to manage it through the Ministry of Economy, according to this rule.

A bill to formalize this loan was rejected by a committee of the Bolivian Parliament, with the majority of the Movement to Socialism (MAS) of former President Evo Morales, who noted deficiencies in the documentation that the interim government must provide.

The MAS denounces that this type of credits are conditional on interventionist measures in Bolivian economic policy by international organizations such as the IMF, while the transitory Executive maintains that this is not the case, and instead they have more advantageous conditions than others signed during the almost fourteen Morales’ years in power.

The interim government of Jeanine Áñez accuses the MAS parliamentary majority of politically blocking loans for some 1.7 billion dollars, destined mainly to strengthen the country’s health system in the face of the coronavirus pandemic.

The transitional Executive turned to international organizations in the face of the COVID-19 crisis, after years of tension and distant relations with some of them, such as the IMF, during Evo Morales’ period in power.

Bolivia has declared a state of sanitary emergency due to the coronavirus, with 29,423 cases of the disease and 934 deaths, according to the latest official data in the country, of some eleven million inhabitants.


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