Cabinet approved two appropriations to overcome the negative economic impact of the pandemic. One with the Inter-American Development Bank (IDB) for $450 million and another with the CAF-Bank of the Americas for $350 million. The Legislative Assembly must approve both.
More than 16,500 direct jobs and another 100,000 indirect ones are at risk in Cochabamba due to the deficit situation that construction companies are going through, aggravated by the debt of more than Bs 400 million ($57.47 mn) the national Government owes the sub-national bodies.
76% of micro, small and medium enterprises in Santa Cruz will be forced to fire staff after 90 days of quarantine, according to a survey of 343 members of Youth Enterprise. The consultation took place during May.
We have illiquidity of more than Bs 1.1 billion ($158 mn) which prevents the payment of operating expenses and salaries to doctors, nurses and frontline personnel who carry out specific tasks in the fight against Covid-19.
A congressional committee in Bolivia rejected the $327 million IMF loan to fight COVID-19. The Planning Commission of the Chamber of Deputies, controlled by MAS (Movement for Socialism) lawmakers loyal to ousted president Evo Morales, unanimously rejected the deal on grounds of lack of proper documentation from the IMF. The interim government denounced the Parliament’s rejection of the loan, which was to be repaid over five years at a one percent interest, calling it a political rather than an economic decision.
Bolivia’s foreign debt currently totals $11.62 billion. The government is managing new credits and bond issues so that it will increase to over $14 billion in the coming weeks.
The Government and the municipalities reached a preliminary agreement for $120 million to attend the emergency of COVID-19. The Ministry of Health will contribute $70 million and $50 million comes from credit from CAF-Development Bank of the Americas that is waiting for the approval of the Legislative Assembly.
The government announced that in the coming days, it would place $1.5 billion in sovereign bonds on the international market to raise resources to address the crisis caused by the coronavirus. Up to March, there was a reduction of Bs 2.3 billion ($330.5 mn), and up to June, there are Bs 9 billion ($1.29 bn) less, as a result of the tax deferral.
Between March and April, the State attracted donations for a total of $5 million, of which $2.8 million came from the Bolivian private sector and the rest from international organizations and partner countries to strengthen the fight against COVID-19.
The Bank of Productive Development (BDP-SAM), channel Bs 150 million ($21.55 mn) through financial institutions to reactivate micro-enterprises. Also, in the following weeks, they will channel the Bs 1.5 billion ($215.51 mn) established in Ministerial Resolution 159.