Impact of Credit Freeze on Hydrocarbon Imports in Bolivia

A recent credit freeze in Bolivia is hindering hydrocarbon imports, leading to significant fuel shortages. Minister Prada criticized legislators for misinformation regarding fuel credits and emphasized their accountability. The Central Bank’s role in managing loan disbursements is crucial, as recent shifts have created a gap in funding for fuel imports. Prada urged lawmakers to approve loans to rectify the situation.

In Bolivia, a credit freeze is adversely affecting hydrocarbon imports. Minister Prada addressed claims made by national assembly members, emphasizing that fuel purchases are directly linked to credit approvals. He criticized legislators for misleading the public regarding the flow of foreign currency, a crucial factor contributing to severe fuel shortages and long lines at gas stations.

Minister Prada clarified the essential role of loans managed by the national government in fulfilling the population’s needs, particularly in compliance with Supreme Decree 29236. The Central Bank of Bolivia (BCB) is responsible for receiving loan disbursements in dollars and converting them into national currency for operational transfer. This financial framework has historically ensured foreign currency availability for fuel imports until some shifts occurred in 2023.

The statistics indicate a concerning transition in 2023, where Bolivia received $1.126 billion in loans while paying $1.491 billion in debt services. This discrepancy worsened in 2024, with $674 million in disbursements against $1.526 billion in payments, creating a significant gap in funding. Consequently, the country is unable to meet its total fuel demand, adversely impacting the citizens.

Prada highlighted the lawmakers’ accountability in this crisis, stating that the restriction of foreign currency inflows is detrimental to the populace. He urged legislators to uphold their responsibilities and approve the necessary loans. Furthermore, he called for transparency from politicians attempting to gain support by criticizing the national government ahead of the upcoming elections on August 17. To address the hydrocarbon supply challenges, the minister assured the public that the government would implement necessary measures.

The current credit freeze in Bolivia is obstructing the imports of hydrocarbons and causing fuel shortages. Minister Prada emphasized the significance of legislators’ roles in approving loans essential for foreign currency flow and urged for transparency. The decline in loan disbursements relative to debt obligations has resulted in a significant funding gap, necessitating prompt legislative action to mitigate the adverse effects on the population.

Original Source: www.plenglish.com