Bolivia initiates reorganization or liquidation of state companies

The Bolivian government has initiated a process to reorganize, dissolve, or liquidate state-owned and mixed companies following the approval of Supreme Decree 5727. A technical evaluation of 67 entities—comprising 42 fully state-owned and 25 mixed companies—identified at least 20 in critical financial situations.

Decisions regarding each entity will be based on technical diagnoses from the Office for the Strengthening of Public Enterprise (OFEP) and must be approved by the Strategic Superior Council of Public Enterprise (COSEEP). The decree does not mandate automatic closures; instead, it establishes a legal framework for individual assessments. For companies recommended for reorganization or liquidation, relevant ministries have 15 business days to manage the necessary regulatory instruments.

The review includes major entities such as Entel, as well as various electricity and petroleum companies. To protect state interests, companies undergoing this process are prohibited from taking on new debt, selling assets, hiring permanent staff, or approving salary increases. While the government aims to reduce state spending on deficit-ridden entities, the move has already faced opposition from the Federation of Bolivian Mine Workers (FSTMB).