IMF Executive Board Approves 36-Month Extended Fund Facility Arrangement for Bolivia

IMF News, October 2, 2026

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Canonical URL: IMF Executive Board Approves 36-Month Extended Fund Facility Arrangement for Bolivia

The IMF Executive Board approved a 36-month arrangement under the Extended Fund Facility (EFF) for Bolivia with access of SDR 1.369 billion, or 570 percent of quota, about US$1.9 billion.
The Board's approval allows an immediate disbursement of SDR 156 million (about US$214 million). Subsequent disbursements will be phased over the duration of the arrangement, contingent on the completion of program reviews.
IMF support is expected to catalyze around US$4 billion in additional financing from other international financial institutions.

The authorities’ EFF-supported program aims to:
- restore macroeconomic stability,
- protect vulnerable households,
- rebuild international reserves,
- reduce fiscal and external vulnerabilities,
- strengthen financial sector resilience,
- foster sustainable, inclusive, private sector-led growth.
The program emphasizes fiscal measures supported by stronger fiscal institutions and more efficient spending to place public debt on a firm downward trajectory while protecting vulnerable households.
The program will promote a more flexible exchange rate regime, enhance monetary policy and financial supervision frameworks, and advance reforms to improve governance, transparency, and the business environment to promote private investment and a job-rich recovery.

Fiscal sustainability is identified as the program’s central anchor, while strengthening support to vulnerable households.
The frontloaded fiscal effort includes:
- phasing out remaining fuel subsidies through an automatic pricing mechanism alongside stronger and better-targeted social protection,
- enhancing expenditure efficiency,
- addressing arrears,
- reforming public enterprises,
- strengthening fiscal institutions, including a medium-term fiscal framework anchored in debt reduction.

Key monetary and exchange rate measures include:
- adoption of a market-determined exchange rate,
- preserving a credible monetary framework,
- elimination of new central bank budget financing,
- transition to reserve money targeting,
- prudent liquidity management and reserve accumulation,
- foreign exchange intervention limited to addressing disorderly market conditions,
- reforms to strengthen central bank autonomy, governance, and accountability.
Gross international reserves projections (in millions of U.S. dollars): 3,713 (2025), 5,734 (2026), 7,297 (2027).

The program supports strengthening financial sector supervision and crisis preparedness, close monitoring of vulnerabilities, and modernizing prudential standards.
Reforms to strengthen the anti-money laundering and counter-terrorism financing frameworks are emphasized.
The structural reform agenda aims to improve the business environment and governance, reduce market distortions, attract private investment, and promote formal employment.
Well-sequenced capacity development and clear communication of program objectives are highlighted as essential to support timely implementation and sustain public support.

Real GDP: -1.6 (2025), -3.0 (2026), -1.5 (2027).
Nominal GDP: 18.0 (2025), 13.1 (2026), 14.2 (2027).
CPI inflation (period average): 19.5 (2025), 12.7 (2026), 15.8 (2027).
CPI inflation (end of period): 20.4 (2025), 14.2 (2026), 10.7 (2027).
Revenues and grants (percent of GDP): 16.8 (2025), 16.9 (2026), 17.3 (2027).
Expenditure (percent of GDP): 28.2 (2025), 26.1 (2026), 24.0 (2027).
Primary balance (percent of GDP): -8.8 (2025), -6.5 (2026), -3.0 (2027).
Overall balance (net lending/borrowing) (percent of GDP): -11.4 (2025), -9.2 (2026), -6.7 (2027).
Total gross NFPS debt (percent of GDP): 83.3 (2025), 100.2 (2026), 95.1 (2027).
Current account (percent of GDP): -1.9 (2025), 1.6 (2026), 1.0 (2027).
Exports of goods and services (percent of GDP): 16.4 (2025), 25.4 (2026), 30.1 (2027).
Imports of goods and services (percent of GDP): 17.6 (2025), 23.2 (2026), 28.2 (2027).
Financial account (percent of GDP): -1.8 (2025), 4.6 (2026), 2.1 (2027).
Net errors and omissions (percent of GDP): -2.3 (2025), 0.0 (2026), 0.0 (2027).
Terms of trade index (percent change): 1.2 (2025), 0.1 (2026), -0.8 (2027).
Credit to the private sector (percentage change): 3.1 (2025), 4.0 (2026), 7.3 (2027).
Broad money (IMF definition): 57.6 (2025), 54.6 (2026), 51.6 (2027).