The Bolivian Chamber of Construction, Caboco, declared an emergency and warned with "large-scale" layoffs affecting 470,000 jobs in the country. The debt with national, departmental and municipal governments reaches $143.67; then came the conflicts of October and November 2019; and now the total paralysis of companies due to the coronavirus pandemic.
The Executive Board of the International Monetary Fund (IMF) approved Bolivias request for emergency financial assistance of about $327 million (SDR 240.1 million, 100 percent of quota) under the Rapid Financing Instrument (RFI) to help the country meet the balance of payments need stemming from the outbreak of the COVID-19 pandemic, and support urgently required medical spending and relief measures to protect the well-being of the population. According to the IMF Bolivias response to the pandemic has been timely, well-targeted, and appropriate.
Bolivia's zinc sector will post steady production growth in the medium term, supported by elevated zinc prices. However, from 2022 onwards, lower zinc prices will impact production rates negatively, meaning that we forecast production to decline from 557.0kt in 2019 to 508.0kt in 2029. In terms of export value, zinc accounts for over half of Bolivia's total mineral exports. This trend will continue, supported by rising zinc prices. In 2017, Bolivia's mined zinc exports totalled $1.5 billion in value, up from $1.4 billion the previous year, and the highest value in over a decade. The majority of exports will continue to head to Asia, with Japan, China and South Korea accounting for more than 75% of the value of the country's zinc exports. Bolivia will remain a top global producer of mined zinc, due to significant reserves at key mines.
Law 767 withheld $173 million from municipalities, $50 million from governments and $34 million from public universities, according to the Federation of Bolivian Municipalities (FAM), to promote investment in hydrocarbon exploration and exploitation. A law approved yesterday establishes the return of 12% of the HDT until the lifting of the health emergency. According to the FAM, the resources retained since 2016 are equivalent to $495 million, which should refund to face the coronavirus, reactivate the economy and avoid the increase of unemployment.
From the use of transgenics in agricultural production, foreign investment for the Salar de Uyuni to exploit the lithium, tax policies, and issuance of bonds abroad, and the adjustment of expenditures on the resource of the General State Budget, are measures that the Government analyzes to reactivate the Bolivian economy, affected by the coronavirus as in other countries of the world.
The suspension of attention in restaurants, greaves and other businesses due to the quarantine caused the demand for pork to fall 70% and many small producers have gone out of business and others are at risk of closing down. Lower demand caused the price of a kilo of live pork, from a range of $1.4 - $1.7 to $0.7, the cost of production is $1.2. The department's Association of Swine Farmers produces 1,000 tons per month.