New loans of $7bn would boost foreign debt to 46% of the GDP

As of June of this year, according to the Monetary Policy Report (MPR) 2020 of the Central Bank of Bolivia (BCB), the balance of Bolivia's public foreign debt amounted to US$11.3 billion, 28.4% of GDP. However, loans of $7 billion negotiated with the Inter-American Development Bank (IADB) and the World Bank would increase the ratio to 46% of the GDP, which is above the threshold recommended by these institutions and close to the 50'% recommended by CAF.

Fire affects 80,672 hectares in forest management areas

The fire entered the forest management area of the El Tuna concession and threatens to destroy the stock of harvested wood - more than 1,000 logs - from last year's and this year's harvest. The productive sector says that the stoppage of operations limits access to and supply of raw material. The affected forest management area totals 80,672 hectares.

More than 1.8 mn has affected by wildfires in La Paz

More than 1.8 million hectares in the Madidi and Apolobamba national parks, in the north of La Paz, are consumed by fires. The Government will use a Boeing CH-47 Chinook helicopter, that arrived last night in Santa Cruz, to fight the wildfires. The situation is getting worse all across the country, with fires reported in the Guarani communities of Machareti in Chuquisaca, as well as in Tarija's Chaco region and in Iténez Park in Beni.

85% of private schools are at risk

Eighty-five per cent of educational businesses are at risk of closing their doors because of reduced revenues due to school closures and the economic crisis that deepened the pandemic. More than 2,000 academic units may cease operations due to lack of income and low enrollment in virtual classrooms. Many schools have had to reduce teaching and even administrative staff.

Governor’s Office invested $36 mn in electric networks and asked that ELFEC remain in the State

Between phase I and V of the Rural Electrification Project, the Government of Cochabamba invested more than $36 million, financed with external credits and own resources. These projects were carried out in 39 municipalities and benefited more than 38 thousand families. For this reason, it asks that Elfec continue to be a state-owned company. The networks were given as a commodatum to ELFEC.

Fires reach eight departments and burn 1.7 million hectares

Despite the increase in activities aimed at controlling forest fires and the declaration of national disaster, the fire is spreading through eight of the nine departments, affecting 1.7 million hectares. In Santa Cruz, there are cattle at risk. Thirty-three per cent of the fires are in forests, a situation that increases the negative consequences for biodiversity.

Bolivia: IMF forecasts a 7.9% drop in 2020 and 5.6% growth in 2021

The Bolivian economy will fall this year by 7.9%, but in 2021 it will recover and reach a growth of 5.6%, according to the updated projections of the International Monetary Fund (IMF) which also forecasts a drop in unemployment in the country. The international organization foresees an inflation rate of 1.7% this year and 4.1% next year and an unemployment rate of 8% this year, which will fall to 4% in 2021. It also projects one of a current account deficit of 2.6% this year and 3.5 in 2021.