Bolivia’s state electricity company (ENDE) obtained a license to operate in Argentina and will commercialise 500.000 volts of electricity in this country. ENDE expects a monthly income of $2 million. The shipment of electric power will go through a 110-kilometre cable that runs from Yaguacua in Bolivia to Tartagal in Argentina.
Bolivia will export to Europe more than 11 million litres of anhydrous alcohol for $7 million. Anhydrous alcohol is used in various industries such as special liquors, biofuels, perfumery and medicine. According to the Development Minister, Nelida Sifuentes, the product has a 99% purity, has a high added value in the international markets and does not suffer the price oscillations of raw materials. She said that the first shipments will begin next week.
Bolivia’s international reserves recovered in the last week to reach $8.4 billion, according to the Economy Ministry. At the beginning of April, the international reserves were $7.9 billion. The Economy Ministry explained that behave of the international reserves depend on different variables such as trade balance or the net capital flow. The government expects a $1.2 billion reduction of the international reserves for 2019 due to the “heavy investments” that will take place in the country.
The Financial System Authority (ASFI) said that the credit portfolio of the financial system in Bolivia registered a healthy growth and that financial arrears represent 2% of credits, the lowest level in the region. According to ASFI, Colombia has the highest level of financial arrears with 4.4% followed by Ecuador with 3.5%, Peru (3.4%), Argentina and Brazil both with 3.1%, Paraguay (2.5%), Uruguay (2.4%), Chile and Bolivia both with 2%.
Oil prices increased to its highest level in six months after the US Government announced the end of the exemptions that allowed eight countries to buy oil from Iran. In New York, the light sweet crude (WTI) barrel reached $65.7 while in London the Brent barrel reached $74.04. The price of the WTI barrel is a reference for Bolivia where the government drafted the General Budget (PGE) for 2019 with revenues based on a price of $50.25 per barrel.
Bolivia and Argentina aimed to strengthen their ties in the gas and electricity sectors. In an official visit to Argentina, president Evo Morales and his counterpart Mauricio Macri signed various agreements to increase investments on the hydrocarbons and electricity sectors as well as increase the use of Paraguay-Parana waterway to allow Bolivian exports through the Argentinian port of Rosario. Both countries also agreed to strengthen their scientific cooperation to develop biofuels.
Bolivia’s external debt is within reasonable margins, said the Interamerican Development Bank (IADB), one of the country’s main creditors. The IDB finances public investment projects, mainly in the areas of infrastructure and job creation. More than 70% of the financing portfolio goes to infrastructure projects: roads, electric sector, hospitals, water supply and sanitation.
The industrial sector aims to increase its share of the Gross Domestic Product (GDP) from 16% to 20%. The president of the Industries National Chamber (CNI), Ibo Blazicevic presented to the government a 10-year plan to achieve the objective. The Planning Minister, Mariana Prado, welcomed the proposal and said that this means that the government will withdraw from some sectors such as hydrocarbons and mining to boost the private industrial sector.
YPFB, the State oil company, announced that it concluded the works to modify its storage capacity to expand its ethanol plants and enhance their transportation system. YPFB’s president Oscar Barriga, said that the job demanded an investment of over $41 million and will allow the company to receive 150 million litres of anhydrous alcohol from sugar producers and convert them in super ethanol 92 combustible.
Bolivia and Argentina will discuss the lithium prices to be exploited in both countries. President Evo Morales and his Argentinian counterpart, Mauricio Macri, will meet to discuss this topic and signed other bilateral projects. Bolivia, Argentina and Chile posses around 80% of the global lithium reserves. Bolivia plans to invest more than $900 million in the exploitation and industrialisation of the mineral.