The Bolivian government faces challenges in securing loans for hydrocarbon imports, impacting fuel availability. Minister Prada criticizes assembly members for misinformation regarding fuel purchase credits and emphasizes their legislative responsibilities. A significant gap between loan disbursements and payment obligations has hindered foreign currency flow, exacerbating fuel shortages for the public.
In Bolivia, the approval of necessary credits for hydrocarbon imports has been hindered, impacting fuel supplies significantly. Minister Prada expressed concern over public misinformation by some national assembly members regarding the existence of credits linked to fuel purchases, emphasizing their responsibility for the malfunctioning financial flow.
Prada indicated that the long queues at fuel pumps serve as an excuse for legislators to evade their accountability for the foreign currency flow, which is essential for paying fuel imports. The minister highlighted the government’s role in managing loans within its economic framework to satisfy civilian needs, as per Supreme Decree 29236, which directs the Central Bank of Bolivia (BCB) to handle loan disbursements in US dollars.
Historically, loan disbursements have exceeded Bolivia’s external debt service payments, ensuring a steady foreign currency flow for fuel imports. However, a troubling trend emerged in 2023 when the country received $1.126 billion in loans yet incurred payments over $1.491 billion. The financial disparity intensified into 2024, with disbursements of $674 million against expenditures of $1.526 billion.
This lack of foreign currency has created a supply gap, failing to meet domestic fuel demand. Minister Prada asserted that the public suffers due to the obstruction of foreign currency entry, urging legislators to fulfill their duties and endorse the loans. He also called for honesty from political figures who criticize the government as they campaign for presidency ahead of the general elections on August 17, assuring the population that measures will be instituted to ensure adequate hydrocarbon supply needs are met.
In summary, the article highlights the critical situation in Bolivia regarding the approval of loans essential for hydrocarbon imports. Minister Prada underscores the importance of legislative responsibility in facilitating foreign currency flow, which is vital to sustaining fuel supplies. The struggle between loan disbursements and payment obligations significantly hampers the government’s ability to meet domestic demand, adversely affecting the populace. Thus, timely approval of these loans is crucial to mitigate the ongoing fuel supply crisis.
Original Source: www.plenglish.com
