Bolivia plans to issue sovereign bonds for $ 1.5 billion in 2020


LA PAZ (Sputnik) – Bolivia plans to make a new sovereign bond issue in 2020, for up to 1.5 billion dollars, according to the general budget that parliament intends to approve until mid-December, said deputy Otilia Choque.

"That authorization for the hiring in the capital markets of freely available resources, through sovereign bonds, is contained in the project presented by the previous government (of Evo Morales)," Choque, president of the economic policy commission, told reporters of the lower chamber.

He added that the current de facto Government of Jeanine Anez, acting via self-proclamation since November 12, "has not expressed any intention to modify the budget proposal, so it is unlikely that fundamental changes will be introduced apart from some minor adjustments" .

Last week, the new Economy Minister, Jose Luis Parada, said he did not consider it "relevant" to propose adjustments to the draft national budget submitted to parliament by the previous administration.

"This is a transition government and what we want is only to guarantee the continuity of projects and make only the necessary adjustments so as not to put stability at risk," he told local media.

Shock, deputy of the Movement To Socialism of Morales, which controls the parliament, said that the economic commission plans to conclude this week the analysis of the draft budget, to then submit it to a vote in the plenary of the Chamber of Deputies.

If the issuance of sovereign bonds is confirmed, it would be the fourth time in nine years Bolivia uses this financing mechanism, justified by the Morales Government because of the country's economic strength and the need to increase public investments.

In 2012 and 2013, Bolivia issued sovereign debt for 500 million dollars each year, and in 2017 it rose to 1,000 million, according to a report by the Ministry of Economy.

The 2020 budget projects a growth of 4.2%, compared to the 4.5% forecast for 2019, although the political and social crisis of October and November it will prevent reaching this annual goal, as business organizations warned.

The National Chamber of Commerce projected last week that, due to the "serious impact" of the crisis that resulted in an abrupt change in the Government, the growth of the Bolivian economy would be only 3.2% in 2019.
Even so, the growth of the Bolivian economy this year will be much higher than the average for Latin America and the Caribbean, which the International Monetary Fund recently revised to only 0.2%.

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