World Bank Group Approves USD 500M Towards Fiscal Sustainability, Job Creation In Bolivia

(MENAFN- Caribbean News Global) WASHINGTON, USA - The World Bank Group approved USD 500 million in budget support for Bolivia to restore fiscal sustainability while protecting poor and vulnerable households and create the conditions for restarting growth and promote private sector-led job creation.

The financing is the first in a planned series of two operations and rests on two pillars, both supported by actions the government has already adopted. The first focuses on strengthening public finances while protecting poor and vulnerable households. The second opens the economy to private sector investment by expanding access to finance, facilitating agricultural exports, and easing conditions for investment, including a modernised regulatory framework for fintech providers, easier lending requirements, and greater private participation in the electricity sector. Together, these efforts seek to foster a more enabling environment for businesses to invest, grow and generate jobs.

The approval of USD 500 million in financing represents a significant endorsement of the policy measures we are implementing to stabilise the economy and restore confidence in Bolivia. Under the leadership of President Rodrigo Paz, we are advancing toward greater fiscal sustainability while safeguarding vulnerable households and fostering a more conducive environment for private investment. Our objective is to ensure that macroeconomic stability translates into tangible benefits for the Bolivian people: more jobs, greater economic opportunities, and sustainable economic growth,” said Christian Andrés Morales Burgos, Bolivia's minister of economy and public finance.

This operation provides general budget support during a period of adjustment that requires liquidity as measures are put in place. It draws on analytical work by the World Bank Group team, including collaboration with the Government, stakeholder discussions, coordination with development partners, and a systematic assessment of effects of the supported policies.

“This support opens a new chapter in the World Bank Group's partnership with Bolivia. It backs the country's own transformation agenda at a pivotal moment to create the foundations for stable growth, private investment and job creation, combining financing and technical expertise,” said Ariel Yepez, World Bank director for Bolivia, Chile, Colombia, Ecuador, Peru, and Venezuela.

The program is part of a coordinated package of support from international partners, including the International Monetary Fund, the Inter-American Development Bank, and CAF – Development Bank of Latin America and the Caribbean.

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