Bolivia formalizes $1.9 billion agreement with the IMF for economic reforms
The Government of Bolivia has formalized an important financial agreement with the International Monetary Fund (IMF), which contemplates a disbursement of 1.9 billion dollars. This capital has as its primary objective to strengthen the economic reform program promoted by the current administration and to bolster the country’s international reserves.
The measure was established through Law 1765, a document that was recently published in the Official Gazette of Bolivia, complying with the necessary legal protocols to enter into force immediately.
Adjustments in the fuel market
The entry into force of this agreement coincides with a strategic decision by the executive regarding hydrocarbon policy. President Rodrigo Paz announced the lifting of the diesel subsidy, allowing the fuel to adjust its price according to international market fluctuations.
- Previous price: 9.80 bolivianos (1 dollar) per liter.
- New price: 17.95 bolivianos (1.83 dollars) per liter.
This move responds to the commitments made to the multilateral organization, where the Bolivian State has set the goal of progressively eliminating fuel subsidies by the year 2027, in accordance with the technical plan agreed upon last July.
The financing seeks to mitigate the persistent fiscal and external imbalances that have impacted the country’s economic stability in recent years.
Technical details and payment terms
The aid package amounts to 1.369 billion Special Drawing Rights (SDR), which are equivalent to the 1.9 billion dollars mentioned. Regarding the repayment conditions, the agreement stipulates the following terms:
- Repayment term: Up to 10 years from each disbursement.
- Interest rate: 3.47%, subject to variations based on the SDR exchange rate.
- Amortization: An initial grace period of four years and six months has been set.
- Disbursements: The total period for the execution of disbursements extends up to 36 months.
