The approval of the credit of more than $40.8 million will allow the financing of public investment projects in the Autonomous Region of Gran Chaco, postponed for more than 20 years. Funding is subject to the Public Investment Project Financing Program Operational Regulations, which provide for the financing of local counterparties and public investment projects with physical advancement.
Once Bolivia completes the Flegt Plan accession process with the European Union (EU), forestry exports expected to increase to more than $20 million, currently exporting timber to the EU worth $12.06 million. The Flegt (Law Enforcement, Governance and Forestry Trade) is a document that confirms that a shipment of wood or products derived from it has been produced legally, following the laws of the exporting country. Only countries that join the Voluntary Partnership Agreement (AVA) with the EU can issue Flegt licenses.
After 12 years of the export ban, in which the country ceased to receive more than $1 billion, the national government enacted the supreme decree authorizing the free export of agricultural products and promoting production; however, President Añez warned that the rule should not mean an increase in prices in the domestic market. The decree exempts the export of products that have self-sufficiency, such as wheat. Soybean Export focuses on four countries: Colombia, Peru, Ecuador and Chile. Bolivia seeks to enter China’s Market with soy; currently, the phytosanitary opening is in process. It estimates that this will generate up to $500 million in a year.
The Ministry of Economy reported that at the end of 2019, external debt stood at $11,079 million, representing 26% of Bolivia’s Gross Domestic Product (GDP).