From Seattletimes · · 1m 50s
Bolivia Approves $1.9 Billion IMF Deal
Bolivia's government secures $1.9 billion IMF loan to tackle economic crisis amid fuel subsidy cuts.
In brief
Bolivia's government secures $1.9 billion IMF loan to tackle economic crisis amid fuel subsidy cuts. Bolivia's conservative government approved a $1.9 billion IMF loan to address economic crisis after ending diesel subsidies, triggering union threats of unrest. Originally reported by Seattletimes.
Bolivia approves $1.9 billion IMF loan
Bolivian lawmakers approved a $1.9 billion loan agreement with the International Monetary Fund on Friday, delivering the conservative government a key victory in its efforts to ease the country’s deep economic crisis as unions threatened renewed protests.
President ends diesel subsidies
President Rodrigo Paz announced an immediate end to subsidies for the diesel powering Bolivia’s trucks, buses and tractors, a step toward meeting IMF demands.
Senate ratifies IMF agreement
The Senate ratified the IMF agreement a day after the lower house approved it, clearing the final legislative hurdle for the three-year financing program aimed at replenishing dwindling foreign reserves and stabilizing the ailing economy marked by high inflation and weak growth.
IMF program requires approval
The program still requires approval from the IMF’s executive board before funds can be disbursed.
Economy minister pledges benefits
Economy Minister Christian Morales told senators that the deal would give other lenders, including the World Bank and the Inter-American Development Bank, greater confidence in the government and help it secure about $5 billion in additional financing.
Unions warn of unrest
The Bolivian Workers’ Central, the country’s main labor federation, and other unions have voiced fierce opposition to the IMF loan, warning that the government spending cuts required under the deal would drive up living costs and deepen hardship for struggling families.
President pledges cash assistance
President Paz announced about $79 million in cash assistance for 2.9 million Bolivians, along with loans on preferential terms for truckers, small businesses and producers facing higher diesel costs.
The key point
Bolivia's conservative government approved a $1.9 billion IMF loan to address economic crisis after ending diesel subsidies, triggering union threats of unrest.
