Bolivia: Request For An Extended Arrangement under the Extended Fund Facility-Press Release; Staff Report; Staff Statement and Statement by the Executive Director for Bolivia

International Monetary Fund

No 2026/259, IMF Staff Country Reports from International Monetary Fund

Abstract: The new administration has implemented ambitious policy measures since taking office at end-2025. The government has committed to a frontloaded fiscal adjustment to preserve debt sustainability while protecting vulnerable groups, tightened monetary conditions, ended monetary financing of the budget, unified the official and reference (market) exchange rates, and moved to a more flexible exchange rate regime. Favorable terms of trade, early budget support from International Financial Institutions (IFIs), and a pre-emptive liability management operation have supported a smoother-than-expected adjustment in the economy. The government has also issued its first bond in international markets since 2022. Despite these successes, important challenges remain. The economy is in its third year of recession, and international reserves remain low. Furthermore, higher global oil prices after the war in the Middle East have complicated the policy environment, precipitating a return to energy subsidies and increasing pressures on the balance of payments (BOP).

Pages: 119
Date: 2026-10-07
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