IDB approves US$750 million for Bolivia to stabilize its economy and reform public finances

The Executive Board of the Inter-American Development Bank (IDB) on Thursday approved a US$750 million financial package to support Bolivia's macroeconomic stabilization plan and fiscal reforms, the Bolivian Government reported.

The operation includes two loans with different terms and objectives. The first is a US$500 million special development loan, intended to provide budget support and help stabilize the economy, with a seven-year repayment term and a three-year grace period. The second, for US$250 million, is a policy-based loan that will finance fiscal reforms to steer the country toward sustainable public finances, with a 20-year term and a 7.4-year grace period.

The package is part of a broader reform program Bolivia agreed with the International Monetary Fund (IMF) in October 2026, backed by the international community. On October 2, the IMF approved about US$1.9 billion in financing under the Extended Fund Facility, with a duration of 36 months.

The approval formalizes efforts President Rodrigo Paz had announced in September, when he said the multilateral lender had committed resources for that same amount. With these funds, the Bolivian Government aims to strengthen public finances and help rebuild international reserves, at a time of economic hardship for the country.

Bolivian authorities and media note, however, that the Board's approval does not mean the US$750 million has already entered the country. The effect on reserves and the availability of dollars will depend on the disbursement schedule, the conditions attached to each operation, and progress on the reforms that were agreed.

Photo: Visión 360

Source: La Razón