The construction and mineral sectors were the most affected by the Covid-19 pandemic in the first half of this year, falling by 50.95% and 38.56% respectively. The National Institute of Statistics indicated that the only sectors that grew were communication (6.14%) due to the increase in the use of the internet, and agriculture (1.53%) due to the good behavior of livestock and non-industrial agricultural activity.
Bank arrears as of August 31, 2020 reached $469 billion, exceeding the arrears registered in 2019, according to the National Banks Association (ASOBAN). This default is a consequence of the impact of Covid-19 on the country. ASOBAN also reported that the number of accounts up to August 2020 reached 11,175,468.
Loans to the productive sector increased by 5% between August 2019 and August this year, according to the Financial System Supervisory Authority (ASFI). Loans in August reached Bs.83.99 billion ($12.19 billion), BS.4.04 billion ($587.45 million) more than in the same period in 2019. The manufacturing industry received 36.1% of the loans, followed by the construction sector (25%), agriculture and livestock (24.2%) and tourism (8.4%).
The Huanuni Mining Company (EMH) has a deficit of at least $15 million, as a result of the paralysis of production for two months due to the coronavirus pandemic, and the impossibility of marketing its tin concentrates freely. The mining company can only sell to the state-owned Metalúrgica de Vinto, which also has financial problems.
The oversupply of sugar and price competition in the local market brought down sugar prices, currently at Bs.110-120 ($15.96 - $17.41) per quintal. This situation has put at least 5,000 small sugarcane growers in Santa Cruz at risk of disappearing and losing their patrimony. Sugarcane producers have proposed the Government to allow 30% of this year's production to be exported in order to alleviate the situation.