Credit rescheduling up 51% to May

Loan rescheduling has increased by 51% through May compared to the same period in 2019 and has reached $847 million, according to the Association of Private Banks of Bolivia (Asoban). The portfolio of production loans grew by 5% to May compared to 2019 and amounts to $11.44 billion, and the social interest housing loan portfolio grew by 10%, in five months $3.84 billion.

Sinosteel requests payment of $45 mn, ESM could break the contract

Tensions arise between Empresa Siderúrgica Mutún (ESM) and Sinosteel. The Chinese company asked for $45 million to deliver the report to the final design of the project, paralyzed since January, arguing that the state has not cancelled debt for equipment orders for six months. The ESM is preparing a contingency plan if the contract break. The state-owned company paid $104 million, and the steel plant has an advance of 3%.

17.24 million credit for microenterprises launched today

Starting Monday, an initial credit of Bs 120 million ($17.4 million) will be available to the micro-business sector to reactivate the economy for small productive units. The fund is open. The credit will have an interest rate of 3% and will be for two years. Also, he indicated that the injection of these resources would be through a mobile wallet which will encourage domestic consumption.

Seven airports with investments of over $112 million do not operate

Except for the Uyuni and Alcantarí airports, the other seven airports built between 2011 and 2018 in the towns of Ixiamas, Chimoré, Copacabana, Apolo, San Ignacio de Velasco, Monteagudo and Oruro are either not operating or are marginal. The executed investment is more than $112 million in the seven air terminals. In the last two years, they generated administrative and maintenance expenses of almost Bs 5 million ($718,390).

Government investment in health reaches 5% of total resources received in PGE 2020

A study by the Jubilee Foundation on the budget allocation of the departmental governments in 2020, states that only 5% of the resources received are for health. The departments demanded a 12% refund of the Direct Tax on Hydrocarbons (IDH), which withheld to create a fund to support hydrocarbon exploration. During the period 2014 - 2019, the $500 million was never used. President Jeanine Áñez enacted a law that restores part of these resources, $200 million, with the condition that 50% shall be used to strengthen the health system of municipalities and governorships.

Newspaper La Razon fires 140 workers

With "La Razón", Carlos Gill recognized in 2019 that his annual earnings were between 9 and 93 million Bolivians ($1.3mn and $13.6 mn). He owns the newspaper for more than a decade. If we take an average, we add in the end a probable accumulated of 500 million Bolivians ($71 million). One hundred forty ex-employees fired from "La Razón" are preparing to fight for their severance pay. Director Claudia Benavente decided to throw them out on the first day of July without severance pay. She used the perfect excuse: the COVID-19.

BDP will finance the installation of grain and seed silos for up to 20 years

The Productive Development Bank BDP-SAM launched "Pirwa Productiva", its new second-tier business line aimed at the country's agro-productive sector. This loan will finance 20-year storage structures for grains, seeds, and agricultural inputs, and provide specialized technical assistance. Interest rates are regulated for the microenterprise sector at 11.5%, for small businesses at 7%, and medium-size companies at 6%.