Bolivia approves $1.9 billion IMF loan to address economic crisis

The Bolivian parliament has approved a $1.9 billion assistance program from the International Monetary Fund (IMF) to be distributed over 36 months. The move comes as the nation faces its most severe economic crisis in four decades.

Under the terms of the agreement, the administration of center-right President Rodrigo Paz must implement a comprehensive economic reform program. A key requirement is the termination of fuel subsidies by January 2027. These subsidies, which have been in place for approximately 20 years, are cited by authorities as a significant burden on public finances and a driver of illegal fuel smuggling.

President Paz, who took office in November, has committed to reducing state spending and pursuing privatization efforts. The country was previously placed under a state of emergency in June following weeks of anti-government protests.