Bolivia’s recent credit freeze adversely affects hydrocarbon imports, causing fuel shortages. Minister Prada criticized misleading assembly statements and highlighted the importance of approved funds for economic stability. The nation faces a significant foreign currency deficit, jeopardizing fuel supply, prompting Prada to emphasize the need for legislative accountability.
The recent credit freeze in Bolivia has critically impacted hydrocarbon imports, leading to shortages of diesel and gasoline. Minister Prada expressed concerns regarding misleading statements from national assembly members, claiming there are no credits related to fuel purchases, which he stated misinforms the public. He emphasized the responsibility of legislators in approving necessary credits for maintaining the flow of dollars, essential for fuel acquisition.
Prada pointed out that long lines at fuel stations serve as an excuse for politicians to evade responsibility regarding the country’s foreign currency flow. This freeze has severely hampered payments for fuel imports, subsequently influencing supply levels. He reminded lawmakers that loan management comes under national economic planning to address public needs, noting the Central Bank’s role in converting dollar disbursements into national currency for project execution.
Historically, Bolivia received loans that exceeded external debt service payments, ensuring enough foreign currency for fuel imports. However, in stark contrast to previous years, 2023 saw a deficit; Bolivia received $1.126 billion in loans but needed to reimburse over $1.491 billion. The shortfall widened in 2024, where loan disbursements fell to $674 million against payments amounting to $1.526 billion.
This reduction in foreign currency inflow has resulted in an inability to meet 100 percent of domestic fuel demand. Minister Prada condemned this situation, stating, “the people are being harmed” due to the halted foreign currency influx and urged legislators to fulfill their duties. He implored politicians to be truthful and not undermine the government while aiming for the presidency in the upcoming general elections on August 17. Prada assured the public that the national government is committed to resolving hydrocarbon supply challenges.
In summary, Bolivia’s recent credit freeze poses significant challenges to hydrocarbon imports, resulting in dwindling fuel supplies. Minister Prada has criticized the inaccuracies in assembly member statements and emphasized the need for legislators to approve essential loans for the country’s economy. The current economic landscape reflects a concerning deficit in foreign currency inflow, which directly impacts the public’s access to essential fuel resources. The government remains dedicated to addressing ongoing supply issues while urging responsible political conduct.
Original Source: www.plenglish.com
