Day: Jul 15, 2020

BCB reduced legal reserve to favour loans with 3% annual interest in the financial system

The board of directors of the Central Bank of Bolivia (BCB) reported a decrease in legal reserve rates in both national and foreign currency, to favour credits for the purchase of domestic products and the payment of services. This measure will inject approximately Bs 4 billion ($574.71 mn) by reducing the legal reserve rate and increasing the percentage of funds in custody. It will enable the population to have liquidity in national currency at low cost through the financial system at an annual interest rate of 3% and with terms of at least 11 months.

Fuel sales dropped 85% in the quarantine

The sales of liquid fuel at the pumps fell by 85%, and Natural Gas Vehicle (NGV) had a collapse of 95% in the rigid quarantine, although an improvement noted in recent days, sales remain low mainly NGV, which is principally requested by the public transport. The sector expects the government to increase the commissions of the refuelling stations. It is already more than 14 years that commission margins are frozen.

La Paz Governor’s Office lost about $5.75 mn in discounted gold mining royalties.

The Governor’s Office stated yesterday that the department of La Paz lost around 40 million Bolivians ($5.75 mn) due to a resolution passed by the previous government, which indicates that if a gold merchant claims to be a smelter or refiner, it is released from paying 40% of the mining royalty. The regulation expired in April of this year. In 2019, 42 tons extracted with an approximate value of $2 billion. For the State, only less than 50 million dollars remained.