Bolivia reached an agreement with the International Monetary Fund for a $1.9 billion loan that will be used for a 36-month technical plan to support President Rodrigo Paz’s economic reform program.

According to IMF spokesperson Joana Pereira, “the IMF-supported program is expected to help catalyze additional financing from the World Bank, the Inter-American Development Bank, and other development partners, contributing to a broader financing package of at least $5 billion over the program period.”

The comprehensive reform plan includes restoring fiscal sustainability, focusing on streamlining public spending through greater targeting and efficiency to “strengthen social safety nets and ensure that fiscal consolidation does not disproportionately affect the poor.”

The Bolivian president’s measures aim for an adjustment of monetary policy and a more flexible exchange rate regime, “essential to support price stability, eliminate foreign exchange market distortions, and rebuild international reserves.”

Another key domestic aspect is maintaining zero monetary financing for the fiscal deficit, as well as the governance and operational autonomy of the Central Bank of Bolivia (BCB).

M.Pino

Source: elsiglo

(Reference image source: Aaron Lefler on Unsplash)

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