The first meeting of the National Council for Risk Reduction and Attention to Disasters and Emergencies (Conarade) approved a budget of Bs. 64 million ($9.18 mn) for the attention of emergencies and disasters in the country. The budget covers disasters caused by rains, landslides, floods and other emergencies such as fires, frosts and droughts.
Category: Macroeconomy/Finance
Information regarding Bolivia’s productive sector and the country’s macroeconomy.
After protests, the Government instructed a six month pause for loans payments, both capital and interest
After two days of protests from the transport sector, which demanded the extension of the deferment of bank loans, the Government ordered the freezing of the payment of capital and interest for a period of six months of grace. The measure was questioned by Bolivia's Association of Private Banks (Asoban), which claims that it weakens the chain of payments and risks a financial crisis.
Government of Santa Cruz: Bolivia would lose $10 mn per month on gas sales to Argentina if it does not exceed minimum volumes
The Santa Cruz Governor's Office warned that if Bolivia does not exceed the minimum natural gas volumes signed with Argentina in the fifth addendum, the country will lose revenues of $10 million per month due to the new price structure agreed in December.
Given the 18.4% fall in reserves, it suggests consolidating exports of lithium and gas
The reduction in exports and remittances from abroad led to a fall of 18.4% of Net International Reserves (NIR) in 2020. In a context marked by the resurgence of Covid-19, the trend will continue to fall in 2021; it suggests that lithium's industrialisation and the opening of new gas markets consolidate.
IBCE claims that the country loses $30 mn per day of strike
The Bolivian Institute of Foreign Trade (IBCE) reported that the transport strike with roadblocks, which took place yesterday throughout the country and continues today in Santa Cruz, generates an economic loss of at least $30 million per day. The transporters adopted this pressure measure to demand the extension of the bank credit deferment for six months.
Smuggling causes losses of $120 million in three sectors
The smuggling of food products and alcoholic beverages from Argentina caused economic losses of $120 million in 2020 to three sectors: the wine, dairy and food industries.
Price of urea rises by 40%, and imports soar by 400%
More than a year after the urea and ammonia plant's shutdown, the country can no longer supply its demand. Producers are having difficulty finding the fertilizer and must pay up to 40% more. The country has gone from being an exporter to an importer of the fertilizer. Purchases rose by 400%, while sales fell by 94%.
Santa Cruz regional government warns that institutional conflicts are risking $1.2bn in export revenues
The Governor's Office of Santa Cruz warned that the National Agricultural Health and Food Safety Service (SENASAG) conflicts could jeopardise the country's $1.2 billion income in exports.
Government increased to $12mn resources for road contingencies due to rain
The Bolivian Highway Administration (ABC), informed this Monday that the Government has increased the resources to attend to the country's rainy season and any contingency that may arise on the roads of the Fundamental Road Network (RVF) from Bs 46 million ($6.6 mn) to Bs 84 million ($12 mn).
Regional and local governments receive only 8.7% of the national budget
The departmental and municipal autonomous governments administer less than 10% of the state budget and must face the pandemic's resurgence this year with more significant needs and obligations, while the central level left with more than 90% of the resources. This year the country's 337 municipalities will administer 5.7% of the entire budget, while the country's nine departments manage 3%.
