Bolivia delays decisions on crisis-hit state firms amid fiscal concerns

Eight months into its term, Bolivia's government is still deliberating the fate of 15 state-owned companies identified as critically underperforming financially. Despite an updated diagnosis of these firms, concrete decisions remain pending, raising concerns among experts about escalating fiscal costs.

Pablo Camacho, director of the Office for the Strengthening of Public Companies (OFEP), stated that the accumulated losses of these companies total Bs 12.742 million. The 15 most critical firms account for Bs 5.177 million of these losses, approximately 42% of the total. This latest assessment follows a February report indicating that 64 out of 67 state companies were operating at a loss, with only YPFB, ENDE, and Comibol showing profits but below international efficiency standards.

Several companies are showing significant deterioration in their assets. Mi Teleférico's net worth has decreased by Bs 2.039 million. Yacana, Mi Teleférico, the Bolivian Hydrocarbons Industrialization Company (EBIH), Karachipampa Metallurgical Company (EMK), Quipus, Bolivian Lithium Deposits (YLB), Bolivian Food and Derivatives Company (EBA), Bolivian Agricultural Production Company (B-Agro), Bolivian Gold Company (Epcoro), and Military Air Transport (TAM) are among those identified as high-risk.

OFEP describes the situation at YLB, Karachipampa, Quipus, and Yacana as technical bankruptcy, with accumulated losses exceeding their initial capital. These companies also show a high reliance on state funding, having received Bs 18.227 million in loans, Bs 8.154 million in capital contributions, and Bs 148 million in donations, while still struggling with Bs 1.182 million in overdue payments. The government has mandated that ministries overseeing these companies must present action plans, but the ultimate decisions on their future remain undecided.