Government and IP agree to resolve fuel and dollar shortages in Bolivia

PeaceBolivian President Luis Arce, his economic cabinet and leaders of private associations signed an agreement on Friday aimed at resolving the shortage of dollars and fuel in the country through international loans.

“External financing is important to introduce foreign currency into the national economy and that is why approval (in Parliament) of the pending credits is necessary,” Economy Minister Marcelo Montenegro told the media.

The government and private businessmen have committed to follow up on the efforts in Congress and with international entities to inject foreign currency into the economy.

The centrist and right-wing opposition and legislators close to former President Evo Morales (2006-2019) have prevented parliamentary approval of financing since last year.

Morales is at odds with Arce over the ruling party’s presidential candidacy for the 2025 elections, although only the coca grower leader announced his candidacy.

The government has repeatedly stated that 11 international loans worth approximately $1.039 billion are frozen in Congress for various projects in the country.

Montenegro said that the Executive Branch and businessmen see the need to manage “new external financing from international organizations that allow the arrival of foreign currency to our economy.”

Regarding the fuel shortage, the government has promised to facilitate procedures so that businesses can make direct imports.

The president of the Confederation of Private Entrepreneurs of Bolivia (CEPB), Giovanni Ortuño, said that “Bolivia is experiencing a critical economic situation and that, if urgent and effective measures are not taken, the situation could worsen and become unsustainable.”

Gasoline and diesel shortages occur every two or three months in Bolivia.

Since last year, the country has reported lower foreign exchange earnings, due to a decrease in gas sales, its main source of income until 2020.

The government of leftist President Luis Arce had to use its international reserves to subsidize the price of imported fuels.

Bolivia buys a liter of gasoline from neighboring countries at 0.86 dollars and sells it locally at 0.53 dollars.