Brazil approves debt restructuring for Bolivia

Brazil's Economic Affairs Commission (CAE) has ratified an agreement to restructure approximately US$ 50.8 million in debt owed by Bolivia. The deal involves forgiving 95.73% of the total amount, leaving Bolivia responsible for the remaining balance.

The debt stems from unpaid commitments from the 1980s related to Brazilian export financing, the Brazil-Bolivia Development Fund, and export credit insurance. This restructuring follows international efforts to reduce Bolivia's external debt, including participation from the IMF, the World Bank, and the Paris Club.

Under the terms, Bolivia is responsible for paying the remaining portion, which includes a specific installment of approximately US$ 2.1 million. To settle a portion of this, Bolivia has provided Brazil with a 2,842.57 m² property in the Multicentro Building. The agreement also establishes interest rates based on the six-month Libor plus 2% per annum. Senator Carlos Fávaro reported that the negotiation aims to normalize financial and commercial relations between the two nations.