Bolivian economic program receives backing

Important backing for the Bolivian government’s economic program was today approved by the Andean Development Corporation (CAF) at its CXIII Board Meeting in Caracas. The Board approved a loan operation for US$124 million with a 10-year term and a two-year grace period to finance the fiscal strengthening of the productive and financial sectors, and to improve the productivity and competitiveness of the economy in an effort to generate a sustainable reactivation in the medium term.

With this operation, the CAF maintains its firm backing for medium-term structural solutions that move Bolivia forward in the area of institutional strengthening and strengthening of the financial sector, said Enrique García, president of the multilateral institution.

García added that the CAF funds would be used for institutional strengthening, to partially finance the setting up of the National Hydrocarbons Office which will work to guarantee correct application and compliance with tax liabilities by companies in this sector.

In the financial and corporate area, the resources would finance the design and instrumentation of an efficient mechanism for liquidation of non-productive bank assets leading to an expansion of the liquidity of the system and the possibility of new credit operations.