The President of the United States, Donald Trump, announced that the restrictions of aid to Bolivia were lifted. The aid will begin on the 2020 fiscal year (from 1 October 2019 to 30 September 2020). The US restricted aid since 2017 after consider that the country was failing in its anti-drug policy.
As of November 2019, the financial system equity in Bolivia reached Bs.20.7 billion ($2.99 billion), an increase of 8.3% compared to similar period in 2018. This equity represents 13.3% of the Capital Adequacy Ration (CAP). In Bolivia, the minimum ratio required by law is 10%.
Bolivia will hold a new presidential election on May 3 and political parties have until February 3 to present their candidates. The current elections will replace the one annulled last year amid allegations of fraud and forced the resignation of Evo Morales to the presidency.
Bolivia’s bank deposits dropped from 65% of the GDP in 2018 to 61% in 2019, while loans grew from 62% to 64% of the GDP, according to the Industry and Commerce Chamber of Santa Cruz (CAINCO). According to the government, bank deposits reached up to November 2019 $25.4 billion while loans were $26.5 billion.
Rice prices fell 20% in 2019, impacting farmers capability to increase their productivity. At the same time, maize production dropped approximately 20% due to low land productivity, causing concern in the agricultural sector that fears now an increase of basic food imports in 2020.
At least 75% of some 27,000 registered companies in Bolivia certified the payment of the Christmas Bond, said the Labour Minister, Oscar Mercado.