Germany is a market of ample opportunities for Bolivia’s exportable supply. Last year the export volume of Bolivian nuts to Germany reached 3,447 tons, with a value of 20.8 million euros. The export of quinoa reached 7.2 million euros, and chia seeds amounted to 2.1 million euros. In the case of tin, sales amounted to 700,000 euros. Bolivian purchases to the German market amounted to 144.7 million Euros in capital goods.
Forest fires in Bolivia consumed 2.3 million hectares of forest and pastureland, according to data released by the Fundación Amigos de la Naturaleza (FAN). From January to September 14, 2020, an approximate area of 2.3 million hectares burned throughout the country. The calculations based on the processing of a total of 5,309 satellite images. Forest fires in Bolivia are often caused by deforestation, which allows the expansion of the agricultural and livestock frontier. The high temperatures also favor them.
According to the report of the Government of Santa Cruz, there are 16 fires in the whole department, in the Copaibo Municipal Reserve it is 30 days in a national emergency because the region suffers from a 64% of high and very extreme risk. Forty-seven per cent of the protected natural areas suffer from fires, 42% correspond to land for agro-silvopastoral use, 9% are land for extensive agricultural use, and 1% are land for restricted, intensive farming and forestry use.
The World Bank (WB) and the Inter-American Development Bank (IDB) indicated that the resources provided to the Bolivian State cannot be used for other purposes that are not included in the loan contracts. The president of the Bolivian Assembly, Eva Copa, affirmed on Friday that the Bond against Hunger will be financed with the credits of the IDB and the WB, which total $704 million, but according to the IDB and the WB, these resources have not been assigned for this purpose.
The panorama of the fires does not change in Santa Cruz. The last report of the Early Warning System of the Governor’s Office revealed that, to date, 17% of the area affected by fire corresponds to forests. Currently, throughout the department, there are still 23 active incidents in six municipalities of the Chiquitania. The situation aggravates by the fact that despite the forecast of rain, it did not reach the affected areas.
The Latin American Development Bank (CAF) has issued $750 million in bonds, maturing in five years, to promote Latin America’s economic revival. The issuance attended by 93 U.S. investors, mainly fund managers, public institutions, pension funds and commercial banks. The underwriting banks were Citi, Daiwa, Goldman Sachs and Nomura. CAF’s comprehensive strategy includes a regional emergency credit line of $2.5 billion to reinforce anticyclical economic measures.
Bolivia and Chile will hold a virtual business conference from September 14 to 16 with the purpose of boosting trade and investment between both countries. In 2019, the value of Bolivian exports to Chile reached $92 million. Imports of Chilean products reached $458 million.
Peru lifted restrictions on exports of Bolivian agricultural products. The Bolivian Foreign Affairs Ministry explained that bilateral communications were made, as well as with the Andean Community, which allowed to confirm that the measure adopted by Peru suspended, after intense technical and sanitary negotiations. Since Friday, the free transit of products through the border points between both countries reestablished.
The Minamata Agreement was signed by Bolivia in 2013 along with 140 other countries, as it is a global problem that causes damage to the health of living systems and consequently to human beings. Currently, the Convention is not being complied with because Bolivia didn’t issue reports on mercury emissions into the environment that could help define vulnerable sites and generate policies to control contamination. After the “Baseline Study on Mercury Uses, Emissions and Contamination” was presented in 2016, these reports were no longer updated. The main problem lies the in gold mining that poison the population that consume contaminated water and food such as fish.
Moody’s warns that additional reserves by Covid-19 undermine the profitability of banks in Latin America.
The creation of additional reserves due to the coronavirus pandemic and the macroeconomic forecasts reduced the profitability of financial institutions in Latin America. The largest banks in Brazil, Chile, Colombia, Mexico and Peru experienced similar trajectories, a reduction in the net profit of the institutions of up to 20 base points. Moody’s adds that, although the impacts on the quality of the banks’ assets are not yet known, the deterioration will show when the grace periods granted to users end; although the deferment of payments gave relief to debtors, as these deferments expire the quality of the assets will reveal. A prolongation of the confinement measures will weigh on the economic recovery.