Funds granted for Bolivian Employment Plan

The Andean Development Corporation (CAF) signed an agreement with the Ministry of Finance and the Single Fund Directorate (DUF) for a $25-million loan for the Bolivian government. The loan provides partial financing for the social infrastructure program to support the National Emergency Employment Plan (PLANE).

The purpose of the loan is to create employment through microenterprises which will execute infrastructure works in rural and urban areas. The funds will be used for the rapid implementation of the emergency employment program, with its consequent social impact. In addition to the CAF contribution, PLANE will receive funds from other multilateral and bilateral cooperation organizations.

CAF representative José Vicente Maldonado emphasized the social scope of the operation, which is designed to generate sources of jobs and employment, one of Bolivia’s highest priorities. He said that the main impact of the economic crisis had been to depress employment. Many productive units have had to reduce or suspend activities due to the fall in demand.

The CAF official said that the operation backed the Bolivian government’s efforts to revive productive investment with the resulting generation of jobs.

The multilateral lender participated in the first phase of PLANE with a bridge loan of US$25 million for the rapid startup of the employment generation programs, while the other international organizations in the cofinancing approved the necessary funds for execution of the project.

This operation, which is part of CAF’s financing commitments with the Bolivian government, requires approval of $1.80 billion for the 2002-2007 period.