Moody’s: Bolivia will pay $500 million a year with declining reserves

Moody’s downgraded the rating twice in 2020 from Ba3 to B1 and B2 for deteriorating sovereign credit pricing after assessing Bolivia’s economy, fiscal position, and external position. While Bolivia’s debt profile incorporates relatively low refinancing risks, the government will face bond payments in 2022 and 2023, totalling $1 billion ($500 million each year), which poses significant challenges given that international reserves currently stand at only $1.96 billion in foreign currency.

Source: El Deber