Preliminary data from the National Institute of Statistics (INE) reflect a 5.6% contraction in the Bolivian economy during the cumulative period from January to April 2020. The World Bank predicted that the Bolivian economy would contract by 5.9% this year due to the effect of the pandemic, and the INE data seems to confirm this trend.
$19 million will be invested and financed by the International Monetary Fund (IMF). In the next six months, at least 11,000 people expected to be inserted in the formal sector of the economy. The government will subsidize salaries for six months.
The Banco de Desarrollo Productivo (BDP), reported that the portfolio of the financial institution, on the first floor, exceeded Bs 2 billion ($ 287.3 mn) at the end of May 2020. 50% of the bank’s portfolio concentrates in Santa Cruz, the most influential region of BDP productive credit. Bs 7.3 billion ($1.05 bn) projected for the end of this year.
The Government launched a new housing plan through which it projects the construction of some 20,000 houses with a fund of up to Bs 2.5 billion ($359.2 mn). Loans of up to Bs 150,000 ($21,550) will be granted to a segment not been served before by social housing loans. The interest will be 5.5% annually.
In the first five months, exports reached $2,592 million, 24% less than in the same period of last year. The volume decreased by 36%. The trade deficit is $31 million, and the member countries of the Andean Community and the United States are the leading destinations for non-traditional exports. Sales of oilseeds -soybean and derivatives- reached a value of $285 million, chestnuts $43 million, and meat exports tripled to $20 million. Sugar sales increased 63% in value ($19 million) and 80% in volume.
Workers from the Huanuni Mining Company took over the installations of the Metallurgical Company of Vinto. They are demanding the payment of $39 million to the mining district for the sale of concentrates. Source: Pagina Siete
The Plurinational Legislative Assembly (PLA) last night sanctioned the Exceptional Rent Law, which reduces the payment of rent payments by 50% starting March 17 and up to three months after the end of the quarantine. It only applies to family use environments, rented for up to 5,000 bolivianos ($718.4). In the case of retail or service stores, the rule only benefits those who pay up to 7,000 bolivianos ($1,000). And in the case of businesses, the rent should not exceed 15,000 bolivianos ($2155). If the amount is above than those figures, the rule does not apply.
The government informed this Saturday that it would not touch the Bs 13 billion ($1.87 bn) contemplated for the construction of the Propylene and Polypropylene plant to finance the program to reactivate the economy, hit by the coronavirus.
In total, the State made more than 9.8 million payments for the Renta Dignidad, the Canasta Familiar and the Universal bonds. Due to the health emergency in the country, the Government allocated Bs 4,439 million ($642 mn) for the granting of bonuses to alleviate the needs of the most vulnerable sectors between 1 April and 26 June.
Until May, banks lent Bs 83.13 billion ($1.19 bn) in total, for sectors such as manufacturing, construction and agriculture. It represents a growth of 6.21% compared to 2019.