Bolivia: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report
IMF Staff Country Reports, May 29, 2020
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- Canonical URL
- Bolivia: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report
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Bibliographic details
- Published: May 29, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513545899.002
Context and purpose
- Presents Bolivia’s Request for Purchase Under the Rapid Financing Instrument (RFI).
- Purpose: to cover the urgent balance of payments need arising from:
- an ongoing shift in its terms of trade,
- slowdown in capital flows,
- sudden increase in health care expenditure needs,
- precipitated by the coronavirus disease 2019 epidemic.
- Publication date: May 29, 2020.
IMF staff assessment and recommendation
- IMF staff assess that Bolivia meets the eligibility requirements for the RFI.
- Public debt is sustainable.
- Bolivia has adequate capacity to repay the IMF.
- IMF staff recommend Board approval of Bolivia’s request for a purchase under the RFI of 100 percent of quota.
Projected economic impacts of the epidemic (staff view)
- The epidemic will have a substantial impact on Bolivia’s economy by:
- constraining domestic output,
- reducing export demand,
- lowering the price of its principal exports,
- curtailing external financing flows,
- squeezing fiscal revenues,
- increasing expenditures for public health and social support.
- Outlook characterized as highly uncertain; nonetheless, staff view Bolivia’s debt as remaining sustainable over the medium term and capacity to repay as adequate.
Content in this bundle
- 1bolea2020001