Public investment in 2020 will reach $5.2 billion, according to the 2020’s budget, which is being analysed by the Congress. According to the budget, $4.4 billion will come from direct State investment and $823 from the State-owned companies. 67% will be financed by internal resources and 33% by external resources.
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U.S. disruption of the global economic order reaches a major milestone on Tuesday as the World Trade Organization (WTO) loses its ability to intervene in trade wars, threatening the future of the Geneva-based body. Two years after starting to block appointments, the United States will finally paralyze the WTO’s Appellate Body, which acts as the supreme court for international trade.
Bolivia is making a structural review of the road construction contracts with Chinese firms signed with the former government of Evo Morales, announced the Public Works Minister, Iván Arias. He added that the government is looking to change the term reference of the contracts.
Bolivia’s government will reduce electricity tariffs across the country. It will start in the departments of Santa Cruz with a reduction of up to 50% and Chuquisaca with a decrease of up to 41%. The reductions were negotiated with energy companies (generation, transport and distribution) and the new tariff structure will not affect their profits.
Moody’s has placed Bolivia’s Ba3 rating under review for downgrade. The rating agency said in its report that the monetary and fiscal cushions, key to keep Bolivia’s current grade, have been deteriorating due to constant and important fiscal and current account deficits.
Bolivia’s international reserves are at their lowest levels since 2008, falling from $8.9 billion in December 2018 to $6.7 billion as of 7 November 2019. At the end of 2008, Bolivia’s international reserves reached $7.7 billion. The decline in reserves is the result of the country’s trade deficit, according to economic analyst Rene Martinez from the Jubileo Foundation.
Of 59 operating fields in Bolivia, 41 are in decline, according to data from State-owned YPFB. Between 2006 and 2018, oil revenues reached $37.5 billion, while investment on exploration reached $2.5 billion.
BancoSol will raise its fix income deposit rate to 5% to incentivise savings and have enough resources to support micro and small businesses in Bolivia. The new rates will run throughout December, and the term will be equal or greater than 370 days with a minimum deposit of $10,000.
Since December 2, the Internet rates of the Home Plan of the State – Owned National Telecommunications Company (Entel) have dropped by at least 41%, thanks to the implementation of a fibre optic system that will save $12 million in operating costs.
Deposits in the financial system decreased 1.04% in October, from Bs.180,683 billion ($26.2 billion) to Bs.178,801 billion ($25.9 billion) according to data from the Bolivian Financial Authority (Asfi). October has been marked in Bolivia by political uncertainty and social unrest after the election of 20 October.