More than 80 countries received financing, but only in Bolivia it became a crime | Más de 80 países recibieron el financiamiento y solo en Bolivia se convirtió en delito

By Álvaro Rosales, Unitel; Eju.tv:

IMF Case: More than 80 countries received financing, but only in Bolivia it became a crime, economists question

This Friday, the ruling will be read against former Minister of Economy José Luis Parada for IMF financing to address the Covid-19 emergency; the defense announced an appeal.

This Friday, the ruling will be read against former Minister of Economy José Luis Parada, sentenced to seven years in prison for securing financing from the International Monetary Fund (IMF) to address the Covid-19 emergency. Economists warn that the same instrument was used by more than 80 countries, but only in Bolivia was the technical decision turned into a criminal case.

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Parada secured a loan to address the Covid-19 emergency, which the government of Luis Arce later returned; observers point to ideological rather than technical reasons

“The conviction of some economic authorities for securing an IMF loan is a serious legal, economic, and institutional mistake (…) Many countries accessed this same mechanism, and only in Bolivia did it become a crime,” said economist Pablo Mendieta.

The former minister was accused of arranging a rapid financing instrument of $324 million, which the government of Luis Arce returned after alleging irregularities. However, the defense argued that the loan was legal and that the judicial process was unconstitutional and improper since it had passed legislative review.

According to the defendants’ report, existing regulations supported the operation: Law 1267 of the General Budget and Law 1293, which authorized the use of external debt to face the health emergency.

In addition to Parada, the former president of the Central Bank of Bolivia (BCB), economist Guillermo Aponte, was sentenced to five years in prison for the same case.

“This ruling sends a dangerous message: that in Bolivia, acting quickly and responsibly in times of crisis can lead to prison. Who will want to sign a contract, execute a loan, or make a critical decision if they can later be criminally prosecuted?” questioned Mendieta.

For her part, the former president of the College of Economists of Santa Cruz, Claudia Pacheco, warned that it was the repayment of the loan that caused losses for the country.

“I don’t understand such arrogance and lack of technical judgment: ‘I ask for something, I get it under excellent conditions, I return it because I don’t like who requested it, and then I request it again,’” said Pacheco, referring to the loans that the Arce government has been seeking from various organizations.

Parada’s defense argued that the process was riddled with irregularities and loopholes. They even questioned why the Attorney General’s Office mishandled information about the sentence, stating it was eight years when it is actually seven. Furthermore, they claim the former minister should be judged through a trial of responsibilities.

“My full solidarity with Parada and all those who stood up for Bolivia in the worst political and pandemic moment. They put their professional skills at the service of the country. The trial and conviction are political,” said economist Napoleón Pacheco.

by Omar Pereyra

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