The Government guarantees payment of the Renta Dignidad bond

In the midst of the health emergency caused by the appearance of the Coronavirus in Bolivia, the Government guaranteed the payment of the Renta Dignidad bond to the elderly. However, it was noted that the payment can be accumulated so it was recommended that beneficiaries collect the bond after the quarantine is lifted and stay in their homes to protect their health.

Two companies manufacture prototype ventilators

Two companies are working on prototypes of medical ventilators. Quantum and Scorpion Soft with professionals from different areas carry out this work together. However, they face some difficulties in terms of trafficability and others to carry out manufacturing. These are initiatives that support the fight against the coronavirus.

Intercontinental Gold Announces Temporary Suspension of Bolivian Operations

The Government of Bolivia announced it has closed its borders and all international flights are suspended for 14 days to combat the spread of COVID-19. The quarantine measures also include: curfews, restricted in-country travel between government departments and an order for all persons to remain in their homes 24 hours a day with an exception made for emergencies. As a result, we have temporarily closed our Bolivian operations to comply with this order. We are closely monitoring the situation and will provide regular corporate updates during this unprecedented time.

Pan American Silver announces more mine curtailments due to virus

Pan American Silver Corp., which last week temporarily suspended operations at four mines in Peru, has now curtailed operations in Argentina and Bolivia also as a result of the COVID-19 pandemic, the company announced Monday. The company added that it also suspending supply deliveries and personnel transport at its San Vicente operations in Bolivia to comply with rules there that are also to be in effect until the end of the month.

Fall in WTI oil price will cause $850.5 mn loss in revenue

The fall in the international price of WTI oil to $22.53 a barrel will cause a loss of $850.5 million in income from natural gas exports, equivalent to 2% of the Gross Domestic Product (GDP). However, in the imports of oil derivatives, a saving of $271.7 million will be generated, approximately 0.7% of the GDP. The net impact would show a drop of 1.3% of GDP. The reduction will mainly affect the income of the National Treasury and the income of the governments, municipalities and universities from the Direct Tax on Hydrocarbons (IDH) and royalties.

The BCB ensures liquidity and exchange rate stability

The Central Bank of Bolivia (BCB) designed and implemented timely and effective monetary policy measures to ensure liquidity. Among these measures is the reduction of placements of securities through open market operations, which will be deposited in financial institutions. Concerning economic measures, the BCB confirmed that the Bs 500 family bond would reach more than 1.5 million students in the primary cycle, with an injection into aggregate demand of Bs 800 million ($114.9 mn), without this constituting a problem of illiquidity for the system. The BCB ensures the stability of the exchange rate, despite the context of parity volatility Latinamerica.