The multilateral Andean Corporation Bank (CAF) has awarded Bolivia a Bs.35MM credit program. The Civil Credit Association with Rural Education (Crecer) is one of the beneficiaries. Crecer supports development activities for low-income women, has over 109K clients organized in over 9.2K communal “groups”. Crecer works in nine regional offices and 53 agencies, located mainly in rural and semi urban areas. Bolivia is within the countries with better conditions in LAC for microfinances, per the study “Microscope” made by Intelligence Unit (EIU) of The Economist, funded by CAF.
http://www.eldeber.com.bo/2011/2011-04-27/vernotaahora.php?id=110426230735
The National Banks Association (Asoban) stated that interest rates will be lowered for the productive sector, after a meeting with finance minister. Right now, there is an annual 7% interest rate; SME’s interests are higher (18-19%) as they not request collateral. To date, over 1.8 billion dollars are allocated to this sector; most of the overall loans go to housing, commerce and services. Currently, the liquidity that private banking has is over three billion dollars.
http://www.paginasiete.bo/2011-04-27/Economia/Destacados/8Eco01270411.aspx
Short notes: Bolivia private airline, Aerosur is offering daily flights to the USA, three of them will go directly to Washington DC. The government has approved 5% increase on the pension for retired people; this association rejects that offer and has a protest scheduled for today.
http://www.eldeber.com.bo/2011/2011-04-27/vernotaeconomia.php?id=110426204616
Last week, president implied a referendum to take place to approve the use of two billion dollars to boost the productive sector; later on government officials talked about a law which would be consulted with specific sectors. There is still a main pending issue, whether to boost existing productive sector (small, medium and large entrepreneurs) or go through the state-owned initiatives (with bad records/results here an abroad).
http://www.la-razon.com/version.php?ArticleId=129353&EditionId=2511
The Bolivian Foreign Commerce Institute (IBCE) requests that the government redesigns and allocates better resources to fight rampant contraband (in and out). There is an estimated 150 million dollar loss every year in lost taxes and another 150 million dollar loss in gasoline and diesel fleeing the country.
http://www.eldeber.com.bo/2011/2011-04-27/vernotaahora.php?id=110416185415
An interesting article on public policy regarding the economic model; highlights from the steep increase in gasoline and later annulled in December 2010.
Bolivian Thoughts | Pensamientos Bolivianos (Bilingual/Bilingüe) 