Day: Apr 23, 2019

Bolivia’s international reserves recovered to $8.4 bn

Bolivia’s international reserves recovered in the last week to reach $8.4 billion, according to the Economy Ministry. At the beginning of April, the international reserves were $7.9 billion. The Economy Ministry explained that behave of the international reserves depend on different variables such as trade balance or the net capital flow. The government expects a $1.2 billion reduction of the international reserves for 2019 due to the “heavy investments” that will take place in the country.

ASFI: Bolivia has the lowest credit risk for the financial system in South America

The Financial System Authority  (ASFI) said that the credit portfolio of the financial system in Bolivia registered a healthy growth and that financial arrears represent 2% of credits, the lowest level in the region. According to ASFI, Colombia has the highest level of financial arrears with 4.4% followed by Ecuador with 3.5%, Peru (3.4%), Argentina and Brazil both with 3.1%, Paraguay (2.5%), Uruguay (2.4%), Chile and Bolivia both with 2%.

Oil prices increase after the end of US exemptions

Oil prices increased to its highest level in six months after the US Government announced the end of the exemptions that allowed eight countries to buy oil from Iran.  In New York, the light sweet crude (WTI) barrel reached $65.7 while in London the Brent barrel reached $74.04. The price of the WTI barrel is a reference for Bolivia where the government drafted the General Budget (PGE) for 2019 with revenues based on a price of $50.25 per barrel.

Bolivia and Argentina agreed to deepen cooperation on gas and electricity

Bolivia and Argentina aimed to strengthen their ties in the gas and electricity sectors. In an official visit to Argentina, president Evo Morales and his counterpart Mauricio Macri signed various agreements to increase investments on the hydrocarbons and electricity sectors as well as increase the use of Paraguay-Parana waterway to allow Bolivian exports through the Argentinian port of Rosario. Both countries also agreed to strengthen their scientific cooperation to develop biofuels.