According to the National Institute of Statistics, urban unemployment rose from 4.5% to 8.7% at the end of October 2020. The institution considers that the data boosted by a lousy combination of economic policies and the presence of the Covid-19.
Illegal beverage market generates $118 million in tax evasion
Illegal alcohol leaves deep scars on the country's beer and wine industry. A study by Euromonitor International, sponsored by Cervecería Boliviana Nacional (CBN), updated in 2019, concludes that of the 4,347,783 hectolitres (HL) of the total legal market, 15.4% comes from smuggling, which represents $118 million in tax losses.
Government injects $17.93 million to Entel to expand coverage of its services
The government announced the resumption of the coverage extension projects of the National Telecommunications Company (Entel) with the disbursement of more than Bs 125 million ($17.93 mn). The project involves expanding radio base stations for intercommunication in towns and villages throughout the country and will promote virtual education for students by granting them free Internet access. The strategy will also support access to the mobile phone, cable TV and radio services.
The agricultural sector has a default of $240 million with suppliers
While the government announces a fund of Bs 911 million (a little more than $130 million), through two trusts, to provide credit to the national productive apparatus with an annual interest rate of 0.5% and a 15-year term, the Association of Agricultural Input Suppliers (APIA) reveals that the productive sector of Santa Cruz has been dragging on default of up to $240 million since 2016. The amount grew by 10% this year.
The Brazilian subsidiary of Cresud sold fields in Bolivia for $30 mn
BrasilAgro, the Brazilian-based rural real estate firm controlled by Argentina's Cresud - part of the Irsa group - divested itself of 9,900 agricultural hectares in Bolivia's core zone for $30 million (approximately $3,300 per hectare).
Quinoa sales reach $85.9 million
This year, quinoa exports reached US$85.9 million, according to data from the National Statistics Institute (INE) prepared by Gary Rodríguez's Bolivian Institute. He noted that sales are close to 35,000 tonnes for US$85.9 million, which is a higher volume but lower value than in 2019 due to the drop in international market prices. It is a merit that sales are maintained, and in 2021 can repeat this with promotion and re-categorisation of quinoa and a better price.
Bolivia will end 2020 with a domestic and external debt of 47.7% of GDP
The government will close a year marked by the economic crisis, generated by the coronavirus. The domestic and foreign debt amounts to 47.79% of the Gross Domestic Product (GDP) projected in the Budget for 2021.
Through a decree, the Arce government allocates $5.37 million to BoA
Through Supreme Decree No. 4429, the Government authorised a capital contribution of Bs 37,475,444 to the Bolivian state-owned aviation company (BoA). The disbursement of the amount will be subject to the availability of the National Treasury (TGN).
CAF and European Investment Bank to co-finance climate action projects for $500m
The CAF - Latin American development bank - and the European Investment Bank (EIB) signed a collaborative co-financing framework for European support to Latin America and the Caribbean to alleviate the damage of the Covid-19 pandemic and promote post-pandemic economic recovery. The agreement proposes a USD 500 million co-financing framework to benefit sectors such as … Continue reading CAF and European Investment Bank to co-finance climate action projects for $500m
Government enacts Law on the Tax on Large Fortunes, the refund of VAT and Budget 2021
On Monday morning, the Government passed three laws: 1.The Tax on Large Fortunes (IGF) will be applied annually to those who have a wealth of more than Bs 30 million ($4.3 mn). 2.The Value Added Tax (Re-VAT) establishes a 5% cash refund for people who earn less than 9,000 Bolivianos ($1291.25). 3.General State Budget Law (PGE) which will prioritise public investment with $4.01 billion which, according to the Government, will help economic recovery.
