YPFB’s Ammonia and Urea Plant recorded a loss of $34.4 million during 2018 and 2019, according to an analysis by the consulting firm Gas Energy Latin America (GELA). According to the report, the state-owned plant registered a los of $12.5 million in 2019 and $21.9 million in 2018.
The Consumer Price Index (CPI) registered last December a negative percentage variation of 1.54%, and the accumulated inflation of 2019 closed at 1.47%, according to official information from the National Statistics Institute (INE).
As of November 2019, the financial system equity in Bolivia reached Bs.20.7 billion ($2.99 billion), an increase of 8.3% compared to similar period in 2018. This equity represents 13.3% of the Capital Adequacy Ration (CAP). In Bolivia, the minimum ratio required by law is 10%.
Bolivia’s bank deposits dropped from 65% of the GDP in 2018 to 61% in 2019, while loans grew from 62% to 64% of the GDP, according to the Industry and Commerce Chamber of Santa Cruz (CAINCO). According to the government, bank deposits reached up to November 2019 $25.4 billion while loans were $26.5 billion.
At least 75% of some 27,000 registered companies in Bolivia certified the payment of the Christmas Bond, said the Labour Minister, Oscar Mercado.
Deputy Minister of Pensions and Financial Services Osvaldo Jáuregui reported that the pension system funds administered by the AFPs reached $19 billion. The Government also announced that will end permanently the $10.9 million contract with Colombia’s Heinsohn Business Technology, which was hired to design software for the state-owned Long Term Social Security management company.
Bolivia will end 2019 with the highest fiscal deficit in 17 years, at 9% of the Gross Domestic Product (GDP), according to the Commerce and Industry Chamber of Santa Cruz (CAINCO). A fall on tax collection and state incomes are the main reasons for the deficit. According to the Jubilee Foundation, hydrocarbon revenues fell by 18% while tax collections reduced by 3.5%.
The president of the National Chamber of Industries (CNI), Ibo Blazicevic, called for freezing the national minimum wage in 2020 and only negotiating the increase in the basic level, based on inflation recorded in the current period. He added that Bolivia has the fifth-highest salary in the region; it is a high cost for labour with very little productivity.
Profits from State oil company YPFB drop from $1.3 billion in 2014 to $52 million in 2018, according to data from the company and the Economic Ministry. Executed investments also reduced from $2.1 billion in 2014 to $313.5 million in 2018.
Bolivia could keep open the Brazilian market for Bolivian natural gas for the next 3 or four years. The contract with Brazil should finish at the end of this year. The Hydrocarbons Minister, Victor Hugo Zamora, said that they expect to signed an addendum to the contract in the next 70 days that will define the shipments to the gas still not taken by Brazil (around 12 months) and also it guarantees an income of around $5 billion for Bolivia.