Petrobras confirms that YPFB paid 100% of the fine

Brazil’s state oil company Petrobras confirmed that the Bolivian state oil company (YPFB) has already paid the fine for breaching the gas supply for nine months during the 2018 administration. The company declined to specify the figures, although it is unofficially known that the amount total reaches more than 133 million dollars. Three analysts consulted: Álvaro Ríos, Bernardo Prado and Hugo del Granado agreed that there are great losses for the State because Bolivia does not have the capacity to comply with the contracts.

Dark times for the construction market in Bolivia

The construction market came to a standstill and the trend could continue for the next three years. A census conducted by Captura Consulting, commissioned by the Urban Observatory (OBU) of the Construction Chamber of Santa Cruz (Cadecocruz), reveals a stagnation of the sector that in 2018 maintained the levels of 2017, and in fact decreased by 0, 3%. The same study argues that the real estate market is in clear slowdown, 66% of the people surveyed, indicated that they do not intend to buy a house in the next three years. The reason? the economic situation that the country is going through. The study reflects the uncertainty that exists in the country in a politically charged year due to the presidential elections in October. Economic activity is cooling because sales have fallen in several sectors. The study clarifies that the situation is temporary as long as it is not clear what will happen in the political context.

Bolivia looks to increase technological cooperation with other countries

Bolivia’s deputy Foreign Minister Carmen Almendras reported that the goal for this year is the signing of at least 40 bilateral cooperation instruments to strengthen cooperation with countries in the region and the rest of the world. The objective is to deepen “complementary cooperation”, mainly aimed at the transfer of technology that contributes to the change of the productive matrix and industrialization.

Bolivia’s external debt reached US$ 10.2 billion

The Bolivian external debt reaches US$ 10,187 million. The Ministry of Economy explained that the debt represents 23.3% of the Gross Domestic Product (GDP), below the limits set by international organizations, such as the Andean Community (CAN). The largest creditor is IADB with 28.7%, followed by CAF with 23.8%, and investors in Sovereign Bonds with 19.6%. China is in fourth place with a share of 8, 9%,  followed by the World Bank with 8.5%.

Moody’s kept Bolivia’s grade in Ba3

Moody’s kept Bolivia’s grade on Ba3. The rating agency highlighted the growth and International Reserves of Bolivia, which mitigate risks. William Foster, of the Investors Service of the Rating Agency, explained that one of the challenges for the country is to overcome its high dependence on hydrocarbon exports. Moody’s added that a weak institutional framework is another hurdle.  External vulnerability risk is moderate, with International Reserves at about US$ 6.9 billion, representing 21% of GDP and external debt payments of only 20% to 30% of reserves.

Gas export: The contracts have been made to be fulfilled!

According to the analyst Guillermo Torres Orías, the fine of Petrobras SA to YPFB due to the non-fulfilment in the delivery of gas volumes guaranteed in the GSA throughout 2018 is a consequence of a bad policy applied to the sector and worse long-term planning. The decision making in the hydrocarbons activity must have been of economic efficiency within the limits imposed by the technology and the energy security of the country. The State is responsible for ensuring the continuity of supply and long-term energy security, therefore, it must have built the systems to fulfil this responsibility. In the case of the original contract with Argentina, the addendums that reduce the amounts of gas guaranteed before paying fines for non-compliance confirm the fragility of the delivery schedule in relation to the country’s incremental production capacity. A delivery schedule such as the one negotiated would not have been acceptable, if a correct long-term planning was made in the production of the fields, considering the growing demands of natural gas in the domestic market and the amounts committed in the contract that was already in force with Brazil.

Seven countries offer to build a satellite for Bolivia

Organisations from France, Russia, China, Spain, South Korea, Japan and India expressed their interest in building a prospecting satellite for Bolivia. Within this context, the head of the Bolivian Space Agency (ABE) affirmed that India would be a “good” partner to develop technological entrepreneurship. He added that President Evo Morales has a “keen” interest for Bolivia to having a satellite to prospect natural resources.

Bolivia looks to attract investors in the UAE conference

Bolivia’s President Evo Morales will travel to the United Arab Emirates to attend the 9th Annual Investment Meeting (AIM) 2019 on April 8. The AIM is a global event that gathered international investors, experts, academics and delegates from more than 140 countries. Its objective is to provide updated information on Foreign Direct Investment as well as strategies and knowledge to attract external capital. President Morales will seek to consolidate agreements with businessmen to attract investments to the country. He will then travel to Ankara, Turkey, to hold talks with President Recep Tayyip Erdogan.