Daily Archives: October 20, 2014

Bolivian ruling party insists on state-owned companies despite being non competitive, what a waste!

ABI is the state news agency of the ruling ochlocracy, reporting in El Deber:

Bs15,000 million disbursed to state-owned enterprises

2014-10-19 08.48.31 amThe Central Bank of Bolivia disbursed that amount in loans to finance business projects to YPFB, ENDE, Comibol and Easba. YPFB accounted for 60%.

The president of the Central Bank of Bolivia (BCB), Marcelo Zabalaga reported that, by issuing loans, so far more than Bs15,000 million were disbursed to finance a series of projects to enhance the operations of four state-owned companies.

Bolivian Fiscal Oilfields (YPFB), Empresa Nacional de Electricidad (Ende), Corporación Minera de Bolivia (Comibol), and Sugar Company San Buenaventura (Easba) were the companies that have benefited from the credits of the BCB.

According to Zabalaga, the total amount paid to date, 60% was allocated to finance YPFB projects and the remaining 40% to Ende, Comibol and Easba.

“We are a little over Bs15,000 million (Bolivianos) expenditure that we have done. There are Bs9,000 million and something else we have provided to YPFB, the other 40 percent is for Ende, to Comibol and Easba “said the head of the bank to the media.

He said that until year end “probably” the emission credits to these four companies will increase, the crossing of a dynamic process in their operations.

He said four companies are already paying interest on the loan and is expected to pay the first loan capital will YPFB, next year.

http://www.eldeber.com.bo/economia/emiten-15-000-millones-bolivianos.html

Socialism like communism has not worked anywhere else in the world, have they forgotten about USSR, Cuba, Albania, Venezuela?

The ruling coca grower believes he is in early last century when the theories of Argentinian Prebisch emphasized on state-owned companies. Limiting action to private companies while it has produced wasteful use of public resources across latin America.

Petrobras was inefficient when the state had managerial control, now when it is more privately managed, results are different. In Bolivia, just because of the cheap demagogue of a president that says publicly he doesn’t like to read and he just do things, while he expects that later on his lawyers can work around the law… This is our misfortune and Bolivia keeps on stupid, irrational disbursement to companies that do not have the managerial capacity to succeed.