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Paz says foreign funds for Bolivia will not finance fuel subsidies
🇵🇾 Paraguay /Economy & Trade

Paz says foreign funds for Bolivia will not finance fuel subsidies

From ABC Color · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources New plan
  • Bolivian President Rodrigo Paz said $1.9 billion tied to an International Monetary Fund agreement, alongside access to another $4.5 billion, would fund economic stabilization, public works and social services rather than fuel subsidies.
  • Paz said Congress would consider economic reforms, a fuel-import liberalization plan and legislation to legalize undocumented vehicles.
  • The government has set a variable reference diesel price of 18 bolivianos per liter for some users, while maintaining a 9.80-boliviano price for public transport and private consumers using less than 5,000 liters monthly; protests have demanded the subsidy policy’s repeal.

Bolivia’s President Rodrigo Paz said international financing secured through an agreement with the International Monetary Fund will not be used to pay for fuel subsidies. He said the $1.9 billion IMF package, which opens the way to another $4.5 billion from international institutions, should instead support the population through public works and social programs.

There is a conclusion in eastern and western Bolivia that we cannot use the resources we have obtained for fuel subsidies.

— Rodrigo PazThe president explained why international funds would not finance the subsidy.

Paz said the IMF funds would help stabilize the dollar and create a sustainable economy. He said financing from the World Bank, the Inter-American Development Bank and the Development Bank of Latin America and the Caribbean would support public infrastructure as well as health and education positions. He also referred to separate social-protection agreements worth $700 million.

The president framed the choice as using the money to maintain subsidies, which he said could allow fuel to be diverted and resold at higher prices in neighboring countries, or directing it toward Bolivian needs. He identified the liberalization of fuel imports as one possible policy, allowing each productive sector to buy fuel without going through the state oil company YPFB.

The $1.9 billion is to stabilize the dollar and have a sustainable economy.

— Rodrigo PazPaz described the intended use of the IMF financing.

Congress is also expected to debate a bill legalizing undocumented vehicles, known locally as “chutos.” Paz said legalization would generate substantial revenue for municipalities. The proposal was a campaign promise during the 2025 election and has caused tensions with Chile because of allegations that vehicles stolen there are later sold in Bolivia.

For the needs of Bolivian men and women.

— Rodrigo PazHe contrasted directing funds to citizens’ needs with using them to pay fuel subsidies.

The government set a variable reference price of 18 bolivianos, or $1.52, per liter of diesel on Aug. 17. Public transport and private users consuming less than 5,000 liters a month continue to pay 9.80 bolivianos, or $0.82, per liter. Several sectors have protested with road blockades, demanding that the measure be canceled. The government has said the subsidy withdrawal is one of the IMF’s conditions for the financing program.

Liberate fuel imports.

— Rodrigo PazPaz identified fuel-import liberalization as a possible policy option.
About this summary

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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