On the verge of bankruptcy – Bolivia – Al borde de la quiebra

El Diario:

Bolivia is on the list of 21 countries on the verge of bankruptcy

  • The shortage of dollars continues in the national market, some banks do not have enough to change and they do not receive the US currency in their savings accounts.
Bolivia está en la lista de 21 países al borde de la quiebra
They observe that 21 countries enter the default zone, among which is Bolivia.

Data compiled by Bloomberg show that Bolivia is among the 21 countries on the brink of bankruptcy and some have already made the decision to renegotiate their debt. The rapid rise in Treasury yields has once again raised fears of a possible wave of defaults in emerging markets.

According to international media, a total of 21 emerging market countries have sovereign debt in dollars trading near distress levels, measured by their sovereign dollar bonds trading around a 1,000 basis point premium over Treasury bonds, says larepublica.co.

The economist and former director of the Central Bank of Bolivia (BCB), Gabriel Espinoza, maintains that there is always a probability of default on debt payments. “In this case it grows due to the difficulty that Bolivia has for dollars more than due to the increase in (interest) rates.”

For economist Gonzalo Chávez, the Government faces serious fiscal problems, and even more so with an unfavorable external context.

Meanwhile, the Minister of Economy and Public Finance, Marcelo Montenegro, recently pointed out that Bolivia will be among the first economies with the most economic expansion in South America, in 2023, despite a complex international context, marked by uncertainty and economic contraction.

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