The commitment to generate a plan to reactivate the forest sector made by the Social Control and Inspection Authority for Forests and Land (ABT) and seven municipalities in the Chiquitanía region will require an economic injection of at least $300 million in operating capital.
The WTI oil price rose by 69%, to almost $32 per barrel in May, but the upturn will not immediately impact the cost of Bolivia’s export gas, the price of which is reflected in revenues with a six-month lag. If the recovery in the international price of WTI continues, the positive impacts will not be evident until the beginning of 2021. According to analysts, the reduction concerning that budgeted for 2020 would be between $700 and $850 million.
After almost two months without operating, 400 travel agencies have closed in the country, and the Bolivian Association of Travel and Tourism Agencies (Abavyt) and the National Chamber of Tourism Operators (Canotur) are asking the Government to take over the payment of 4,000 basic salaries for six months, to avoid layoffs and mass unemployment in this sector.
Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) owes $15 million to the sugar mills for the ethanol it withdrew last year. Also, in March, April and May, the oil company did not purchase 25 million litres of the product, and to date, the company did not renew the contract for 2020.
The National Revenue Service cancelled the implementation of the Electronic Invoicing System (EIS), after conducting a technical analysis that took into account the current economic situation of the country, which is aggravated by the Covid-19 health emergency, which prevents the healthy development of taxpayers’ activities.
Metalúrgica Vinto charges $675 to Huanuni and $660 to Colquiri per ton of treated tin. Other smelters charge more than $US 880. The company also points out that in January there was evidence of a debt of $83.2 million for the purchase of tin concentrates from Huanuni, Colquiri and mining cooperatives.
Bolivia has in its territory, about 21 million certified metric tons. The U.S. Geological Survey (USGS) reported in February of this year, in its annual report “Mineral Commodity Summaries”, that Bolivia is the first lithium holder displacing Argentina, which occupied that position until 2019. More than one country will likely be interested in participating in the development of what could be Bolivia’s new economic engine. However, those ambitious plans will have to wait for the elections of a new government, the end of the quarantine and the hard reactivation of the mining and industrial sector.
The latest report reveals that 600 have ceased operation, which is 50% of the small and medium producers in the country, according to the Association of Poultry Farmers (Avipar). They decided to ‘throw in the towel’ in a business that pays Bs 3.50 per kilo of live chicken and that in the current situation requires a production cost of Bs 8 for the same volume. The sector demands state support.
The Electricity and Nuclear Energy Control Authority stated that during the month of April a total discount of Bs 177.8 million ($25.5 mn) was made to 2.6 million homes in the country. The State plans to invest Bs 490 million ($70.4 mn) for this economic relief measure for the population, though will extend it for the months of May and June, according to data from the Ministry of Economy.
The World Bank (WB) warned today that the SARS-CoV-2 coronavirus crisis could push 60 million people around the world into extreme poverty, with hundreds of millions more losing their jobs in the face of the sharp economic downturn expected in 2020. According to the institution’s estimates, the global economy will collapse by about 5% this year.