# Bolivian fiscal disputes and state company restructuring > Live situation record from CLSTR: https://clstr.news/situations/bolivian-fiscal-resource-and-municipal-finance-disputes > Updated: 2026-09-29T15:30:55.000Z. Sources: 25. Developments: 4. The Bolivian government has moved forward with a fiscal adjustment plan through Supreme Decree 5727, which prioritizes the reorganization, dissolution, or liquidation of 67 central state-owned and mixed companies. This initiative follows a technical evaluation by the Office for the Strengthening of Public Enterprise (OFEP) that identified at least 20 entities in critical financial condition. The group of 67 includes 42 fully state-owned and 25 mixed companies, such as Entel and various electricity and petroleum firms. Under the new decree, the Strategic Superior Council of Public Enterprise (COSEEP) must approve decisions based on individual technical diagnoses. To protect state interests during this review, affected companies are prohibited from taking on new debt, selling assets, hiring permanent staff, or approving salary increases. Once a reorganization or liquidation is recommended, relevant ministries have 15 business days to implement the necessary regulatory instruments. President Rodrigo Paz has expanded on the administration’s objectives, noting that approximately $7 billion was previously allocated to projects that failed to achieve import substitution goals. OFEP reports that among the 67 companies under evaluation, only three—Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), the Corporación Minera de Bolivia (COMIBOL), and the Empresa Nacional de Electricidad (ENDE)—are currently profitable. To prevent the closure of certain deficit-running entities, the government is considering public-private partnerships to incorporate private capital and expertise. President Paz has criticized previous administrations, alleging state enterprises were used for political purposes. This restructuring occurs amid intensifying friction between the central government and regional authorities. Eight governors have declared a state of alert, demanding a ‘50/50’ tax redistribution model. In response to the potential privatization of strategic assets, the Federation of Bolivian Mine Workers (FSTMB) has declared a national state of emergency. ## Claims - The government issued Supreme Decree 5727 to prioritize the reorganization, dissolution, or liquidation of 67 central state-owned and mixed companies. (corroborated by 4 sources) - Governors demand a 15% share of tax co-participation for departmental governments starting in 2027 under the '50/50' model. (corroborated by 4 sources) - A technical evaluation identified at least 20 state entities as being in a critical situation. (corroborated by 3 sources) - Regional authorities set an October 31 deadline for the central government to address demands regarding diesel costs and resource redistribution. (corroborated by 2 sources) - The Federation of Mining Workers declared a national state of emergency to oppose the potential privatization of state assets. (corroborated by 2 sources) - The Federation of Cattlemen of Santa Cruz celebrated its 60th anniversary while demanding better diesel supply and export conditions. (single source) - Two customs technicians were injured during a stone-throwing attack by alleged smugglers on the Laja-El Alto route. (single source) - A legislative project is being promoted to repeal Law 767, which currently redirects 12% of hydrocarbon taxes away from local governments. (single source) ## Timeline ### 2026-09-29: Bolivia to review and potentially close unprofitable state enterprises Bolivian President Rodrigo Paz announced a review of state-owned enterprises, targeting the reorganization or liquidation of unprofitable entities and proposing public-private partnerships for recovery. 2 sources. https://clstr.news/cluster/bolivia-to-review-and-potentially-close-unprofitable-state-enterprises ### 2026-09-27: Bolivia initiates reorganization or liquidation of state companies Bolivia has implemented Supreme Decree 5727 to reorganize, dissolve, or liquidate state-owned and mixed companies, targeting at least 20 entities identified as being in critical financial condition. 5 sources. https://clstr.news/cluster/bolivia-initiates-reorganization-or-liquidation-of-state-companies ### 2026-09-24: Bolivia initiates reorganization of 67 state-owned companies Bolivia's government has initiated a plan to reorganize or liquidate 67 state companies, while regional governors demand tax redistribution and diesel cost compensation by October 31. 18 sources. https://clstr.news/cluster/bolivian-governors-demand-5050-fiscal-resource-distribution ### 2026-09-08: Bolivian government and mayors agree to stabilize municipal finances The Bolivian government and municipal leaders have agreed to work together using the Territorial Financial Readjustment Program to stabilize and improve the financial management of capital cities. 2 sources. https://clstr.news/cluster/bolivian-government-and-mayors-agree-to-stabilize-municipal-finances --- Cite as: Bolivian fiscal disputes and state company restructuring. CLSTR, https://clstr.news/situations/bolivian-fiscal-resource-and-municipal-finance-disputes