La Paz, Bolivia: Bolivian lawmakers approved an agreement on Friday that will allow the South American country to access $1.9 billion in financing from the International Monetary Fund (IMF), as the government of President Rodrigo Paz faces foreign currency shortages, fiscal deterioration, and declining international reserves.
The agreement, approved by the lower house on Thursday and ratified by the Senate on Friday, greenlights a loan that is part of a 36-month programme under the IMF's Extended Fund Facility (EFF) and would facilitate access to more than $5 billion in additional funds from institutions such as the World Bank, the Inter-American Development Bank (IDB) and other partners.
The move is seen as a cornerstone of Bolivia's effort to regain access to external financing. In return, the country must implement a stabilisation programme that includes reducing the fiscal deficit, enforcing greater monetary discipline, adopting a more flexible exchange rate regime, and carrying out reforms to boost productivity and improve the investment climate.