15% of MSEs Forced to Close Due to Dollar Shortage | El 15 % de las Mypes obligadas a cerrar por escasez de dólares

By El Mundo, Omar Pereyra, Eju.tv:

More than 15% of manufacturing production units have stopped or closed due to the crisis, affecting the economy of many families who depend on these jobs, according to Conamype.

Source: https://elmundo.com.bo

The Secretary General of the Confederation of Micro and Small Enterprises (CONAMYPE), Juan Carlos Vargas, expressed his concern about the serious situation facing the sector.

According to Vargas, manufacturing activity, which in previous years reached between 60% and 70% of its installed capacity during the end-of-year season, is this year operating at only 30%. This drastic reduction is due to the severe crisis caused by the lack of dollars for importing supplies, which are mostly purchased from abroad.

IMPACT ON EMPLOYMENT AND CLOSURE OF PRODUCTION UNITS

Vargas explained that the low availability of dollars has not only reduced production but also led to job losses. “We are operating at less than half of our capacity, and the impact on employment has been very negative. It is estimated that 15% of production units have stopped or closed, affecting the economy of many families who depend on these jobs,” he said.

The situation has caused desperation among small business owners, who are seeking alternatives to support their households. According to Vargas, in both urban and rural areas, the lack of income has led many people to make extreme sacrifices in order to earn any income to cover their families’ basic needs.

DIFFICULTIES IN MEETING FINANCIAL OBLIGATIONS

In addition to reduced production and employment, the crisis is affecting the ability of small business owners to meet their financial obligations. Vargas mentioned that the sector is facing serious difficulties in paying off loans and other financial commitments, and they have had to request relief measures from the Government. “We need financial institutions to grant us a grace period and forgive some of the accumulated interest, which is suffocating producers,” Vargas concluded.

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