IMF Approves 1.9 Billion Dollar Loan for Bolivia

The International Monetary Fund Executive Board approved a 36-month Extended Fund Facility arrangement for Bolivia, providing access to approximately US$1.9 billion (SDR 1.369 billion). The program begins with an immediate disbursement of about US$214 million, with subsequent funds contingent on successful program reviews.

The initiative seeks to restore macroeconomic stability and address fiscal and external vulnerabilities. To achieve this, Bolivia will phase out fuel subsidies using an automatic pricing mechanism, transition to a market-determined exchange rate, and eliminate new budget financing from the central bank.

Nigel Clarke, the IMF Deputy Managing Director and Acting Chair, stated that the program's central anchor is fiscal sustainability while strengthening support for vulnerable households. The IMF expects the arrangement to catalyze an additional US$4 billion in financing from other international financial institutions to support governance improvements and private sector-led growth.