LatAm News Bolivia

Bancoagrícola's Vice President of Finance, Alexander Pinilla, affirmed that the liquidity of the Salvadoran financial system remained positive in the first half of 2022. In this sense, Pinilla said that deposits in the Salvadoran financial system would continue to grow in the second half of 2022; however, he indicated that the growth rate of deposits would slow down. In this context, in the second quarter of 2022, Bancoagrícola's total deposits increased to USD 16.5 billion, while loans reached USD 15.5 billion.

Argentina's Minister of Economy, Sergio Massa, managed to close his first month in office with a debt placement of ARS 212,236 million. On Monday, in the second tender of August, the Secretary of Finance offered a bid for four securities maturing in 2022 and 2023. In this tender, the Treasury issued a Liquidity Bill (LELITE) maturing on September 30th, 2022; in addition, two discount bills (LEDE) maturing on December 16th, 2022, and January 31th, 2023, and an inflation-adjusted bill (CER) maturing on June 16th, 2023.

On Tuesday, Bolivia's President Luis Arce announced that he had approved the acquisition of USD 1,142 million in debt. According to studies, the country's external and internal indebtedness is currently at least 78.8% of the Gross Domestic Product (GDP). In detail, about 12 decrees were authorized by the Bolivian government to acquire debt contracts with the CAF, IDB, Fonplata, ICO, Eximba, KfW, and IFAD; to boost employment, health, water and sanitation, irrigation, climate change, roads, and energy projects, and to strengthen the State's statistical system and other public investment projects.

Costa Rica Report highlights

Although one of the "leitmotifs" of former President Alvarado Quesada was to leave the "house in order," this has been questioned by various political sectors, including the new President and economist, Rodrigo Chaves.

Administration of Rodrigo Chaves announced on June 22nd, 2022, the modification of the fiscal rule. This occurred after the National Child Welfare Agency (PANI) authorities raised alerts due to the restrictions to urgently allocate resources to private organizations that care for vulnerable minors since they denounced that they would run out of money to operate after June 30th.

On Monday, the Presidents of the nations that make up the Andean Community (CAN) - Colombia, Ecuador, Peru, and Bolivia - said they would like Venezuela, Chile, and Argentina to join the group. "If we manage to integrate Chile, Venezuela, and Argentina... I think this would change things significantly, and our voice would be heard more clearly on the world stage," said the Colombian President, Gustavo Petro. "I would like to express how important it would be for the Andean Community, and the benefits for its members, for Chile and Venezuela to rejoin," said the Peruvian President, Pedro Castillo.

The preparation of the General State Budget for 2023 will begin in September, and the Ministry of Finance already has a few starting points. One of them is the price of oil, one of the primary sources of income for the State's budget. According to the International Monetary Fund (IMF), the price of Ecuadorian oil will average USD 75.3 per barrel in 2023. With that price, the budget's oil revenues would fall by around USD 500 million compared to 2022, warned the former Minister of Finance, Fausto Ortiz.

In view of the shortage of dollars in the domestic market, seven short-term measures are proposed to generate U.S. currency, which is putting the industrial sector and the entire national productive apparatus on edge. The liberalization of exports, the elimination of the Financial Transaction Tax, the streamlining of procedures at the Foreign Trade Single Window and at the National Agricultural Health and Food Safety Service, allowing the free sale of foreign currency in the parallel market, the approval of foreign credits and the issuance of bonds.
The domestic market is facing a critical situation due to the lack of U.S. currency, in spite of the declarations of the authorities that everything is returning to normal, but the banks continue with the restriction in the sale and must acquire them in the parallel market, at a higher value than the official exchange rate.
In this context, the National Chamber of Industries (CNI) and the Bolivian Institute of Foreign Trade (Ibce) propose short-term measures to generate the currency. Both entities agree that it is necessary to free exports and eliminate the Financial Transaction Tax (ITF).
But also, CNI suggests streamlining and simplifying processes at the National Agricultural Health and Food Safety Service (Senasag), speeding up procedures at the Foreign Trade Single Window (Vuce)..

Source: El Diario

Bolivia Report highlights

Bolivia approached international markets once again to carry out operations to purchase and exchange its sovereign bonds for USD 2 billion, maturing in 2022, 2023, and 2028. However, the government announced that it was only able to place USD 800 million, which seems to indicate that the market was not sufficiently "enthusiastic" with the offer presented.

Since 2014, Bolivia has resorted to high public spending and an increase in domestic credit to maintain the pace of economic growth. However, this implied a rise in public debt and a reduction in net international reserves, and a decrease in fiscal savings accumulated so far.

Once the Carnival festivities are over, the population hopes that the price of some products such as meat will return to normal, because they assure that after the 16 days of blockades, which caused shortages and an increase in products, the costs remained relatively high.
"It is still a little expensive, to what it was before (the blockades), I hope it goes down because they told us that after Carnival they would return to their price, although when there are these things they do not lower almost anything, maybe fifty cents," said a chicken meat merchant, who has her business in the area of the Cemetery.
"I hope the price goes down, but it is expensive. How before the potato, for example, was 20, 25 (bolivianos) and due to the lack of rain it has gone up to 40 (bolivianos) and has not gone down, then worse, even to (Bs) 90 with the blockades it has gone up. Then it went down a little, but now there is no less than 50, a good potato. This is how it is staying", said Mrs. Carmen, while she was buying the product in the same sector.
In the same way, in the Rodriguez market and Incachaca street, it was verified that the price of chicken meat did not decrease much, as well as pork meat. The same is true for pork meat. "It's Carnival, it's a party and they must want to recover what they have lost because of the blockades", justified a pork merchant on Incachaca Street.
According to those interviewed, it is well known that after a product raises its cost, for whatever reason, "it is difficult for it to return to its original price".

Source: El Diario

The Eastern Chamber of Agriculture and Livestock (CAO) asks for more action from the Government, as well as from businessmen and industrialists. Public and private companies are feeling the effects of the blockade carried out by supporters of the governing party of the "evista" wing. Those affected lament the Government's inaction to guarantee the transit of Bolivians in the country.
The president of the Agricultural Chamber of the East, José Luis Farah, asked for less politics and more work, as well as more action and less destruction. "I believe that the country needs work and reactivation, and to move the productive apparatus", he pointed out, in a press conference in Santa Cruz, with respect to the blockades set up by the "evista" wing of the MAS.
He said that the measure breaks the food production chain, there is already a shortage of some products, as well as price increases in others and this is not good for the country.
We need dollars, jobs and fuels, said the head of the CAO at the time of requesting the authorities to work for the country's situation to normalize.
As well as the productive sector, the national industry is also feeling the effects of the measures taken by Evo's supporters, including state-owned companies, since they are also unable to obtain supplies and ship their products.

Source: El Deber

On Thursday, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) dispatched 536,000 liters of gasoline to various provinces in the La Paz department to bolster liquid fuel supply. The product was transported in 24 tanker trucks from the Senkata Storage Plant to service stations, in a coordinated effort with the National Hydrocarbons Agency, according to Isaac Riveros, the commercialization manager of the state-owned oil company.

Approximately 113,000 liters of the fuel were allocated to service stations in the highland region of La Paz, including Issucadela, Painter, Tiahuanacu, Batallas Esba SRL, Achacachi, and Caniax SRL. Meanwhile, 423,000 liters of gasoline were sent to the Yungas and the northern part of the La Paz department. The receiving service stations included Yara, Alvapetrol, Adaluz Petrol, Flor de Caña, Madagascar, Netanel, and Palos Blancos (Caranavi), among others.

Isaac Riveros urged the public to avoid excessive fuel hoarding in containers, emphasizing that it only leads to speculation and distress among the people of La Paz. He reiterated that the supply of gasoline, diesel, and Liquified Petroleum Gas (LPG) is guaranteed for the domestic market and will be delivered despite roadblocks by sectors supporting Evo Morales since January 22, demanding the resignation of Judicial Branch magistrates.

Source: La Razón

The Minister of Economy has asked a question that is the admission that there is no Government in the country.
He has said that he wants to find out the origin of the dollars that reach the black market, where they are now valued at up to Bs 9, for the moment.
Good question, although citizens suspected that the Government knew the origin of those dollars, because it had to know something about what is happening in the country.
The general suspicion is that they are narco-dollars that circulate in the only economic activity that does not have problems at this time.
It is known, because the Peruvian Police have said so, that Bolivia and Peru export 1,000 tons of cocaine per year, which does not help much either.
Because very few surely know how many of the dollars generated by these exports enter the country.
What is known is that in Chapare a kilo of white costs between 1,500 and 2,000 dollars and that on the border with Brazil, that is, about 500 kilometers to the East, it costs 7,000.
The price grows as the market moves away from the point of origin, but there it enters unknown territory, or at least foreign to the country.
What other economic activity could be providing the dollars handled by the black market?
Legal activities have nothing to do with it, because they are subject to the special and mysterious policies of the Government, and of the banks, for the management of foreign currencies.
Nobody has dollars in the private business sector, which is proven by the insistent and dramatic requests from business organizations that import inputs to produce.

According to Peru’s Ministry of Foreign Trade and Tourism (Mincetur), the General Secretariat of the Andean Community (SGCAN) ruled in favor of the country by qualifying the measures that Bolivia has been imposing on exports of vegetables (potatoes, tomatoes, onions, carrots, avocados, lemons, grapes, and cherimoyas) from Peru, as restrictive. Last December 2021, Mincetur requested that the Andean Community initiate an investigation in response to the request by Peruvian producers and exporters, requiring that the regional body rule in its favor on the restrictive measures imposed by the Bolivian government.

Source: El Deber

Bolivia Report highlights

According to data from the Central Bank of Bolivia (BCB), the country's Net International Reserves (RIN) continue to decline. In detail, between January and July 2022, Bolivia's NIRs have fallen by 11.2%, from USD 4,752 million to USD 4,219 million. For his part, the Minister of Economy and Public Finance, Marcelo Montenegro, defended the robustness of the NIRs and maintained, "our level of reserves currently provide for more than four or five months of imports; the first thing to consider." In this sense, international standards indicate that international reserves must cover three months of imports.

Source: La Razon

According to data from the Central Bank of Bolivia (BCB), the country's Net International Reserves (RIN) continue to decline. In detail, between January and July 2022, Bolivia's NIRs have fallen by 11.2%, from USD 4,752 million to USD 4,219 million. For his part, the Minister of Economy and Public Finance, Marcelo Montenegro, defended the robustness of the NIRs and maintained, "our level of reserves currently provide for more than four or five months of imports; the first thing to consider." In this sense, international standards indicate that international reserves must cover three months of imports.

Source: La Razon

According to data from the Central Bank of Bolivia (BCB), the country's Net International Reserves (RIN) continue to decline. In detail, between January and July 2022, Bolivia's NIRs have fallen by 11.2%, from USD 4,752 million to USD 4,219 million. For his part, the Minister of Economy and Public Finance, Marcelo Montenegro, defended the robustness of the NIRs and maintained, "our level of reserves currently provide for more than four or five months of imports; the first thing to consider." In this sense, international standards indicate that international reserves must cover three months of imports.

Source: La Razon

El Salvador

El Salvador's banking sector assures that the country's financial liquidity remained positive in June

Argentina

Argentina's Ministry of Economy raises ARS 286,000 million in the local debt market

Bolivia

Arce authorizes USD 1,142 million in new foreign debt

Venezuela

Countries of the Andean Community press for Venezuela, Chile, and Argentina to join the bloc

Ecuador

The IMF suggests a price of USD 75 per barrel of oil for Ecuador's 2023 proforma budget

Weekly Review

Newsletters

Seven measures are proposed to generate dollars

After Carnival, prices of products expected to "return to normal".

Source: El Diario

Public and private industries feel the effects of the blockade and the government takes no action

YPFB sends 536,000 liters of gasoline to La Paz provinces

Bolivia

Who brings the dollars?

Newsletters

The Andean Community demands that Bolivia lift restrictions on Peru’s agricultural imports

Bolivia's Net International Reserves have fallen by 11% so far in 2022

Chile and Argentina want to meet with Bolivia to manage joint lithium production projects

Mamani rules out moving the Census forward to 2023

Bolivia

The Bolivian government seeks to energize hydrocarbon exploration and exploitation

Bolivia

Bolivia reinforces controls on the border with Argentina to stop smuggling

Faced with the fall of the Argentine peso, the prices of products have dropped and entered the national market. Given this, the National Customs, in coordination with the State’s institutions, reinforced controls on the border between Bolivia and Argentina.

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