Bolivia Ratifies $1.9 Billion IMF Loan, Ends Diesel Subsidies to Unlock More Funding
Updated
Updated · Euronews · Sep 19
Bolivia Ratifies $1.9 Billion IMF Loan, Ends Diesel Subsidies to Unlock More Funding
3 articles · Updated · Euronews · Sep 19
Summary
$1.9 billion in IMF financing cleared Bolivia’s final legislative hurdle after the Senate ratified the three-year program a day after lower-house approval.
The deal still needs IMF executive board approval, but La Paz expects it to help restore credit access and unlock about $5 billion more from lenders including the World Bank and IDB.
Hours after the vote, President Rodrigo Paz scrapped diesel subsidies and shifted sales to international prices, while keeping gasoline support for now to meet IMF conditions.
$79 million in cash aid for 2.9 million people and cheap loans for truckers and small businesses were announced to soften the hit from higher diesel costs and ease chronic shortages.
The measures come as unions threaten renewed protests, after road blockades in June and July paralyzed much of Bolivia and forced a 90-day extension of emergency powers.