Bolivia’s fuel import issues stem from delays in credit approvals by assembly members, impacting currency flow. Minister Prada condemned misinformation on fuel purchase credits and called for legislative accountability. The country’s foreign currency inflow has significantly dropped, hindering its ability to meet fuel demand. Prada emphasized the government’s commitment to ensure hydrocarbon supply despite these challenges.
The Bolivian economy is facing significant challenges regarding hydrocarbon imports, largely due to delayed credit approvals by national assembly members. Minister Prada highlighted misinformation being spread about fuel purchase credits, emphasizing that these credits are crucial for maintaining currency flow necessary for imports. He condemned the long lines at fuel stations as an attempt by legislators to evade accountability for the foreign currency crisis impacting fuel supplies.
Prada reiterated the importance of loans being managed by the national government through economic planning per Supreme Decree 29236, which ensures that the Central Bank of Bolivia (BCB) handles dollar disbursements efficiently. He indicated that these funds are converted into local currency to support import activities. For years, Bolivia had successfully managed loan disbursements, but this changed in 2023 with a notable decline in net inflow, leading to significant shortfalls in foreign currency availability for fuel imports.
The financial situation worsened into 2024, where Bolivia received only $674 million in US dollar disbursements while needing to pay back $1.526 billion. This deficit has created a shortfall that prevents the local market from meeting the total fuel demand. Minister Prada emphasized that the lack of foreign currency entry harms the populace and urged legislators to approve necessary credits to rectify this economic strain.
Furthermore, he called for honesty from politicians seeking leadership, especially those critical of the government leading up to the elections on August 17. Prada reassured the citizens that the national government intends to implement measures to ensure sufficient hydrocarbon supplies moving forward.
The challenges facing Bolivia regarding hydrocarbon imports are primarily attributed to legislative inaction on credit approvals, which affects the flow of foreign currency essential for fuel purchases. Minister Prada has called for responsibility among legislators to approve loans and emphasized that the government will undertake measures to address supply deficiencies in hydrocarbons, underscoring a pressing need for effective economic management during election cycles.
Original Source: www.plenglish.com
