A survey conducted by the National Chamber of Commerce (CNC) reveals that eight out of ten companies are considering laying off staff in the next three months. They are calling for the creation of an economic revival fund. Six out of ten companies suffered a drop of more than 70% of their income, and 17% of the entrepreneurs indicate that they will have to close the business due to the impossibility of generating revenue to cover their immediate obligations.
Day: Apr 9, 2020
Financial institutions will stop collecting $1.8 bn in credits, due to the quarantine
The deferment of payments will be for the months of March, April and May. Asoban said that financial institutions, internally, are taking measures to support their borrowers with credits in force as of February 29. As of February, the current rescheduled portfolio, according to Asoban, amounted to $838 million. Source: El Deber
Local Governments execute only 12% of their budget
The latest report of the Vice Ministry of Budget and Fiscal Accounting reveals that the budget execution of local governments is Bs. 2.5 billion ($370.8 mn) and the current budget is Bs. 21.4 billion ($ 3.08 bn); it is an execution of only 12% of the total national budget.
CAF to grant $2.5 billion credit to member countries to deal with pandemic
The Latin American Development Bank - formerly known as the Andean Development Corporation, CAF - reported on Wednesday that it will grant a loan of up to $2.5 billion to its member countries to address the emergency generated by COVID-19. Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Costa Rica, Mexico, Uruguay, Paraguay, Panama, Peru, Dominican Republic, Trinidad and Tobago, Costa Rica and Venezuela are among the CAF partner countries, according to information published on the entity's website. CAF had also approved a contingent credit line of up to $50 million per country to address the public health systems of Argentina, Ecuador, Panama, Paraguay, Peru, Trinidad and Tobago and Uruguay
Real GDP growth in Bolivia will contract in the coming quarters
The economic impact of Covid-19 will exacerbate the country’s recent growth slowdown as the Bolivian government maintains restrictions on mobility and business activity. In addition, the dual impact of weak global demand and the inability of the OPEC+ group to extend oil supply cuts during a March 2020 meeting will undermine global energy prices and constrict Bolivian natural gas production in the coming quarters. Therefore, we now forecast Bolivian real GDP will contract 0.3% y-o-y in 2020, its first recession in over 30 years.
