Category: Macroeconomy/Finance

Information regarding Bolivia’s productive sector and the country’s macroeconomy.

Peru suspends imports of agricultural products from Bolivia, affecting 70% of agro-industrial exports

The Ministry of Agriculture and Irrigation of Peru, through the National Service of Agrarian Health (Senasa), decided to suspend the issuance of sanitary and phytosanitary permits for the import and international transit of products of plant and animal origin from Bolivia. The measure taken by Senasa is because there is a breach of an agreement in Bolivia (Senasag), since the beginning of 2020 to allow the entry of potatoes and onions to the Bolivian market and as a retaliation measure Peru prohibits the transit of national products to this market. Between 2010 and 2019, Bolivia exported more than 8.5 million tons to Peru for a value of $4.37 billion. The oilseed complex represented 70% of the exports to the neighbouring country in that period.

Cumulative inflation reaches 1.47% in August

Accumulated inflation for August 2020 amounts to 1.47%, the increase in prices of food, beverages and medicines affected the Consumer Price Index (CPI). La Paz and Oruro were the most inflationary cities due to the problems generated by the blockades and the least affected by the price increase were Cobija and Santa Cruz. According to the report of the National Institute of Statistics (INE), the CPI registered a positive percentage variation of 0.54% concerning July, and in twelve months it reached 1.39%.

The internal debt of the TGN increased by 48.04% and reached 18.7% of the GDP

The internal debt service of the National Treasury (TGN), until June, increased by 48.04% concerning the same period in 2019. Up to June, the internal debt of the TGN reached Bs 56.24 billion ($ 8.07 bn), 18.7% of the GDP, which amounts to 43 billion dollars. This type of debt corresponds to the resources that the Executive Branch lends itself from internal sources: public and private, to sustain investment policies and the expenditures of the state apparatus.

Nuevatel enters the Stock Market with issues for $24 mn

BDP Sociedad de Titularización S.A. issued the NUEVATEL Securitization Securities – BDP ST 049 for an amount of $24.1 million, of which $19.4 million purchased during the first day of placement. NUEVATEL PCS of Bolivia is the youngest company among the telecommunications operators of the country; the process consisted in replacing liabilities and allocating those resources to an investment project projected by NUEVATEL for the technological strengthening of the company, the development of fixed and mobile networks and the improvement of its financial position.

Remittances from abroad reported an increase of 12.9% compared to June with $94.7 million

According to a report from the Central Bank of Bolivia (BCB), the flow of remittances in July was $97.4 million, 12.9% higher than that registered in June, which was $86.3 million, and that of May, which reported $53.9 million. The drop in remittances recorded in previous months was due to the cessation of activities due to the COVID – 19 quarantine, which absorbs a large amount of migrant labour (construction, hotel services and care of persons, among the most relevant).

Santa Cruz de la Sierra gets $50 million credit for road projects

The Municipality of Santa Cruz obtained a credit from the World Bank, for 50 million dollars. The money is for the execution of road works that were left pending in the capital of Santa Cruz. It is a 40-year term and a 10-year grace period that will allow the construction of the drainage channel of the ninth ring that borders the wholesale market, the Metropolitan Park, which recovers the waterfront with sports courts, bicycle paths and reforestation, and the improvement of the city centre with tile replacement.

Chamber of Deputies approves credit of 3,000,000 euros from Cassa Depositi e Prestiti

The Chamber of Deputies, approved the bill to obtain a credit of 3,000,000 euros from Cassa Depositi e Prestiti, aimed at strengthening rural development and food security policies in Bolivia. The soft loan with the Italian financial institution is for 40 years, with 31 years of grace and no interest, in addition to 18 consecutive repayments, the first is 372 months after the date of the first disbursement.