Bolivia could default without new international financing
Bolivian President Luis Arce indicated that if the country does not access international financing, it could default due to the depletion of its reserves in the resolution of internal conflicts
Bolivia’s internal situation has led the country to the depletion of its international reserves. In this context, President Luis Arce has indicated that without new financing, it could default.
The main creditors of the South American nation, mired in a political, social, and energy crisis, are the Inter-American Development Bank (IDB), the Development Bank of Latin America and the Caribbean (CAF), the World Bank (WB), and China.
Arce indicated that if parliamentary approval of the international loans it requested from multilateral institutions is not achieved, the country would default.
The lack of foreign currency in Bolivia is critical. Added to this is the electricity crisis and clashes with the political opposition, accused by Arce of blocking international financing.
The president has expressed his concern: “We are trying not to default. We have every intention of paying our debt, but what if we don’t have the resources?”
Currently, “there are $1.8 billion in requests for international funds that have not yet been discussed by legislators. The country needs $2.6 billion by December for fuel imports and foreign debt payments.”
M.Pino
Source: infobae
(Reference image source: Rezkytama Putra on Unsplash)
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