$4 Billion to Address Dollar and Fuel Shortages | $us 4.000 millones para regularizar la escasez de dólares y de combustibles

By Gonzalo Chávez, Unitel, Eju.tv:

Bolivia Needs $4 Billion to Address Dollar and Fuel Shortages, Analyst Chávez Says

Economist Gonzalo Chávez highlighted that the gasoline shortage is already directly impacting the population, as it has driven up product prices. He emphasized that $4 billion is needed to address these shortages, suggesting that Bolivia could access funds from the IMF.

Chávez clarified that the blockades were never the main reason for the diesel and gasoline shortages in the country.

“Without a doubt, the blockades worsen the situation, but let’s not forget that the routes through which fuel arrives from other countries remain open. Additionally, diesel arrives from Paraguay, and that route is also open,” he stated.

Chávez noted that Bolivia has a $1 billion fuel deficit per year. He explained that the country needs $250 million monthly to import diesel and gasoline to maintain a steady supply.

He emphasized that “the State lacks the financial capacity to import diesel at the necessary speed and volume.”

Chávez also pointed out that the shortage of foreign currency limits fuel imports, as there is no funding available for them.

He added that the blockades are also affecting foreign currency inflows, as some products might not have been exported due to road closures.

“I believe Bolivia would need at least $1 billion in freely available funds to stabilize the diesel and gasoline supply. However, to make all the necessary adjustments and address various issues linked to the dollar shortage, at least $4 billion would be required,” Chávez concluded.

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Gonzalo Chávez Assesses Bolivia’s Economic Situation

The analyst suggested that Bolivia must seek a credit source that can provide the necessary funds for the national economy.

“Who can lend the country $4 to $5 billion? It’s the International Monetary Fund (IMF). The only institution that could provide this money is the IMF, which would require an economic adjustment,” he stated, adding that the likely measures would include reducing public spending, promoting exports, allowing exchange rate flexibility, and tightening public investment.

He noted that the gasoline shortage is already affecting the population by increasing prices. Additionally, he mentioned that blockades are accelerating inflation, which he called “the worst tax on the people.”

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