Information regarding Bolivia’s productive sector and the country’s macroeconomy.
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.
According to data from the National Statistics Institute (INE), up to April, the rate of the unemployed population in urban areas reached 7.34%, the highest since February 2016 (6.48%). In the micro, small and medium enterprise sector (Mype) some 150,000 business units have gone bankrupt and left more than 500,000 people unemployed. 73% of industrial companies estimate that they will reduce their workforce by 2020, and 49% of factories expect this reduction to be between 11% and 50%. The public administration and social services; agricultural industry, commerce, restaurants and hotels, manufacturing and construction concentrate 84% of workers nationwide.
Mining operators in Oruro expressed concern on Thursday after learning that the National Service for Registration and Control of Marketing of Minerals and Metals (SENARECOM) reported that due to the emergency by Covid-19, to date mining royalties fell on average 56% compared to 2019. In January there was a drop of 26%, in February -19%, in March they fell 66%, in April the drop reached 98% and in May -73%.
The business community of Potosi expressed today its concern about the effects of the Covid-19 pandemic; the sector estimates that at least 15% of the companies in the department will close their doors and that 35% of the employees will lose their jobs.
The Government will inject 140 million bolivianos ($20.11 mn) to reactivate the Incentive Program for the development and sustainability of the energy matrix in the transport sector, which is expected to benefit 72 thousand operators and 5 thousand workshops.
The urban unemployment rate in Bolivia rose from 5.8% to 7.3% between March and April as a result of the coronavirus pandemic. The index came out of the monitoring and analysis on the impact of Covid-19 on the national economy.
