Government reports ethanol production fell by 32% in 2020, but YPFB defaulted on purchase target

The production of anhydrous alcohol, the additive is mixed with superior gasoline, fell by 32% in 2020, a year marked by the stoppage of activities resulting from the pandemic. However, the sugar cane sector, which supplies the raw material, points out that the production of anhydrous alcohol did not fall, but rather that there was a failure by Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) to withdraw the agreed volumes.

An agreement will allow reusing more than 1 million discarded tyres per year

An agreement signed yesterday between the Cochabamba Chamber of Industry, Commerce and Services (ICAM) and the Swiss Foundation for Technical Development Cooperation (Swisscontact) will allow the reuse of more than one million vehicle tyres discarded annually in the country. The agreement aimed at recycling waste from the vehicle fleet. In addition to tyres, the agreement provides for the reuse of 742,664 batteries, 10,659 tonnes of lubricating oils and 606,477 tonnes of scrap metal. The industries will deliver these products to the collection companies.

Results in Vaca Muerta warn that Argentina will stop using Bolivian gas

The return of gas exports from Argentina to Brazil due to the development of Vaca Muerta, the world's second-largest unconventional gas field, is a sign that in at least three years, Argentina will no longer need Bolivian gas to cover its domestic demand. Private companies operating in Vaca Muerta have a strategy to supply gas to northern Argentina and Chile in the next three years. Northern Argentina is the region that demands Bolivian gas. The fifth addendum to the contract signed on 31 December 2020 establishes 8 million cubic metres per day (MMm3d) in summer and 14 MMm3d in winter.

Four municipalities generate 42% of the nation’s wealth

The country's Gross Domestic Product (GDP) productive contribution is 42% in Santa Cruz de la Sierra, La Paz, Cochabamba and El Alto, four municipalities on the central axis, while 328 municipalities generate 45% of the country's wealth. There are 44 poorer municipalities in the country that produces only 2% of GDP. Analysts note that they must change the productive matrix to overcome inequalities.

IMF gave the cheapest credit compared to other agencies at 1% + SDRs

The IMF board approved Bolivia's request for emergency financial assistance of approximately USD 327 million in April. It had an interest rate of 1 per cent, plus SDR rate, 0.5 per cent service fee, a five-year term with just over three years' grace period. The government, through the BCB, decided to repay this disbursement with an additional expenditure of US$24.3 million. The BCB, in a report on external public debt, reveals that the interest rate per creditor as of 31 December 2019 reached an overall weighted average of 3.1%.