In the second half of March, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) stopped acquiring 15 to 20 million litres of anhydrous alcohol committed to the mills, a situation that is causing severe economic damage to the sugarcane sector. At the beginning of the year, YPFB and the mills signed an addendum for three months to extend the contract to buy anhydrous alcohol for 2019, whose purchase volume had not even reached 50% of the 150 million litres committed.
Local production registered a 12% drop, according to data released yesterday by the Bolivian Institute of Foreign Trade (IBCE). According to the information, only in the first three months of 2020, Bolivia purchased from other countries 6,632 tons, the total figure of purchase in 2019 had reached 6,658 tons.
Flower growers in the department of Cochabamba reported an accumulated loss of 100 million Bolivians ($14.37 mn), not counting the total loss of their jobs, during the entire time of the coronavirus pandemic quarantine. More than 4,200 families were affected in the municipalities of Cercado, Quillacollo, Vinto, Sipe Sipe, Tiquipaya, Tarata and the Cochabamba Tropics.
The government bought 178 Spanish Innova ventilators and paid $27,600 for each one with an IDB loan. The State paid an excess of US$ 2.5 million. The IDB also announced on its website that it would allocate an additional $1 million for 30 high-complexity equipment, for only $4,000 each.
Bolivia’s growth for the second quarter of 2020 will have a year-on-year drop of 14.1% and a cumulative contraction of 6.2%; and that if the coronavirus quarantine is extended, the contraction can go to 20.8% (year-on-year) and 9.8% in cumulative terms in the first half of this year.
Between 2006 and 2019, agricultural exports exceeded 18 billion dollars, for 33.8 million tons. Agricultural foreign sales reached their historical peak in 2013 when they registered 2 billion dollars. In 2019, the countries of the Andean Community were the leading buyers of the country’s agricultural products, accounting for 64% of the total. In 2019, Santa Cruz was the largest exporter of agricultural products, followed by Beni and Oruro. A total of $1.32 billion was exported for a volume of 2,677 tons
The Association of Private Banks of Bolivia (Asoban) proposes a two billion dollar fund with the guarantee of the State to support the different sectors and reactivate the economy. It is the estimate of additional resources to the $500 million that the State channels to revive the economy and to give credit to companies, micro, medium and small enterprises. So far, it has not yet seen one cent of the Bs 1.5 billion ($215.5 mn) that should be channelled to productive units from the Banco de Desarrollo Productivo (BDP) through financial entities.
Seven thousand workers in the Santa Cruz industrial park will return to their activities this Monday. They will return to work 100% of the industries in all sectors. The working hours will be from 7:00 to 15:00. Each company has to pick up its personnel. According to the National Chamber of Industry (CNI) during the quarantine, the industry lost $10 million per day.
On Friday, the World Bank’s Board of Executive Directors approved a loan and two credits (one of which is a concession) for a total of $254 million in favour of the Bolivian State, whose objective is to support the country in financing the Government’s social bonds for approximately 3.6 million direct beneficiaries.
The balance of Bolivia’s external public debt as of April 30, 2020, reached $11.6 billion, according to the latest report from the Central Bank of Bolivia (BCB). The balance of the debt as a percentage of the Gross Domestic Product (GDP) reached 27.3%. The largest creditor is the Inter-American Development Bank (IDB), with $3.3 billion. The Andean Development Corporation (CAF) follows, with $2.6 billion.