After two days of protests from the transport sector, which demanded the extension of the deferment of bank loans, the Government ordered the freezing of the payment of capital and interest for a period of six months of grace. The measure was questioned by Bolivia's Association of Private Banks (Asoban), which claims that it weakens the chain of payments and risks a financial crisis.
The reduction in exports and remittances from abroad led to a fall of 18.4% of Net International Reserves (NIR) in 2020. In a context marked by the resurgence of Covid-19, the trend will continue to fall in 2021; it suggests that lithium's industrialisation and the opening of new gas markets consolidate.
The Association of Private Banks of Bolivia (Asoban) warned that a new credit deferral would result in entities no longer receiving an additional $1.8 billion for loan repayment deferral from borrowers.
Together with the Small and Micro Enterprises (SMEs) sector, the transport sector represents 5% of the entire portfolio managed by the private banks. On Tuesday the transport sector completed a day of unemployment, after abandoning negotiations with the government for an extension of the credit deferment for a period of six months.
The smuggling of food products and alcoholic beverages from Argentina caused economic losses of $120 million in 2020 to three sectors: the wine, dairy and food industries.
The Governor's Office of Santa Cruz warned that the National Agricultural Health and Food Safety Service (SENASAG) conflicts could jeopardise the country's $1.2 billion income in exports.
The deferral applied in 2020 in credit quotas payment meant that banks did not receive at least $4 billion in capital and interest. If the deadline extends, as demanded by various sectors, it would be a further blow to the financial system, warned the Association of Private Banks of Bolivia (Asoban).
Marcelo Gabino Gonzales Saique appointed on Monday as the new executive president of Yacimientos de Litio Bolivianos (YLB). He will have the mission of reactivating the process of industrialization of lithium, which has not taken off for 13 years in the country. Marcelo Gonzales has extensive experience in the area and YLB.
The Bolivian financial authority (ASFI) instructed banks to grant a grace period of at least four months for bank loans. During this time, borrowers will only pay interest, but not capital repayments.
According to scientists in the Andean nation, Bolivia's Tuni glacier is disappearing faster than initially anticipated, a predicament that will likely make worse water shortages already plaguing the capital La Paz, just 60 km away.