(Changes bln abbreviation to billion in the headline)
By Daniel Ramos
LA PAZ, July 22 (Reuters) – Bolivia is “days away” from announcing an agreement with the International Monetary Fund for $2.5 billion to $2.8 billion in financing, Economy Minister Gabriel Espinoza told a local radio Wednesday.
• More than half of the IMF funds will arrive by early September and will be used exclusively to reinforce the central bank’s foreign exchange reserves, Espinoza said.
• The IMF deal is expected to trigger further agreements with other multilateral organizations, potentially boosting total funding for the country to more than $5 billion this year, he added.
• The minister stressed that the IMF validated the government’s ongoing economic program and its goals for reducing the fiscal deficit.
• An IMF spokesperson told Reuters the entity remains “in close contact with the Bolivian authorities” and discussions are ongoing.
• In May, Bolivia nearly halved its external financing expectations for this year to around $5 billion, from the $9 billion previously projected.
• The government’s economic plan includes transitioning to a single, flexible exchange rate, implemented in June, to support the productive sector instead of relying on state-defined rates, he added.
• The government’s adjustments come after Bolivia faced over a month of roadblocks and social unrest.
(Reporting by Daniel Ramos; Writing by Aida Pelaez-Fernandez;)
Comments