Both chambers of Bolivia’s Congress approved a 36-month, $1.9 billion financing programme agreed with International Monetary Fund staff. The legislative votes removed a domestic hurdle to the Extended Fund Facility. The agreement still requires approval from the IMF Executive Board before financing can be disbursed.
The IMF reached a staff-level agreement with Bolivia in July for financing equivalent to about $1.9 billion, or 570% of the country’s quota. The fund said the arrangement remained subject to its board’s approval and implementation of agreed prior actions. Reuters and the Associated Press reported that Bolivia’s lower house and Senate had now approved the programme.
REFORMS TARGET FISCAL AND EXTERNAL PRESSURES
The proposed programme is intended to support measures addressing persistent fiscal deficits, falling hydrocarbon production, weaker international reserves and elevated inflation. The IMF said the authorities’ plan includes fiscal consolidation alongside additional social-protection spending and stronger public-finance institutions.
The staff agreement also covers monetary and exchange-rate reforms, financial-sector resilience and governance. The IMF said the authorities planned to move towards a more flexible exchange-rate system, improve bank-resolution and deposit-insurance frameworks, and strengthen oversight of banking and systemic risks.
BOARD APPROVAL REMAINS THE NEXT MILESTONE
The IMF said its programme could help catalyse additional financing from the World Bank, the Inter-American Development Bank and other partners. It estimated that the broader package could reach at least $5 billion over the programme period, conditional on the required approvals and reform implementation.
Congressional approval does not by itself activate the facility or guarantee disbursement. The next concrete milestone is the IMF Executive Board’s consideration of the arrangement after Bolivia completes the agreed prior actions; the timing and initial amount available will depend on that process.