Two months after the quarantine, only three out of 10 cargo trucks are operating in Bolivia. The International Transport Association (Asociaatrin) points out that due to the quarantine there is a lower volume of transport in key sectors such as soy derivatives, mining, and construction. Marcelo Cruz, president of Asociatrin, indicated that in the oilseed sector the volume of cargo contracted by 50%.
According to Bolivia’s Financial Authority (ASFI), bank profits fell by up to 11% from $66.2 million in the first quarter of 2019 to $58.7 million in the same period in 2020. According to the Association of Banks of Bolivia (Asoban) the health of the banks is stable, despite the fall. Asoban’s executive director, Nelson Villalobos, said that until April 2020 deposits registered an annual growth of 7.2 %. As for the loan portfolio, it grew 4.9%
The DAC Fund: Dialogue and Collaborative Support, is an initiative of the Swiss Cooperation that focuses on NGOs, which can submit proposals to promote ideas related to economic development, governance, climate change and environment, as well as the fight against Covid-19.
The paralysis of the economy, the slow reactivation and the lack of closing of the financial statements of the companies, force the business sector to request a deferment of the payment of the Profit Tax, which is fulfilled this May 29, until October or at least to delay 60 days. The National Chamber of Commerce (CNC-Bolivia) and the National Chamber of Industries (CNI), in a joint statement, said that due to the paralysis of most economic activities during the quarantine, companies have been unable to generate sufficient income to meet their obligations.
From January to March of this year, the Bolivian economy has been slowing down to grow only 0.55%, according to the Global Index of Economic Activity (IGAE). The economic activities that affected the low growth were mining, construction, transportation and storage, other industries and financial services. The other sectors registered an expansion, although below 5%.