Bond Scandal Opens Wider Questions | Escándalo de bonos abre más interrogantes

By Unitel:

After Arrest of Former Central Bank President, Economist Warns Bond Case Is Not the Only Matter That Must Be Investigated

The former president of the issuing institution, Edwin Rojas, was arrested this Tuesday and is being investigated for alleged multimillion-dollar economic damage stemming from purported irregular transactions involving sovereign bonds.

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Edwin Rojas (right) served as president of the issuing institution during the administration of Luis Arce (left).

Following the arrest of former president of the Banco Central de Bolivia (BCB), Edwin Rojas, who is under investigation for alleged multimillion-dollar economic damage resulting from operations with sovereign bonds, economist and former director of the issuing institution, Roger Banegas, warned that this case should only be the starting point, since there are other events that also require investigation.

“This is not the only matter that must be investigated. There are other events that the current administration and the authorities of the Banco Central de Bolivia must investigate looking backward,” Banegas said in an interview with UNITEL.

Banegas cited cases such as alleged irregular acts related to gold transactions, where there was an advance sale, as well as other investigations linked to banknote printing tenders.

Added to this is the IMF case, which stems from a rapid financing instrument the State received to address the covid-19 emergency, but which was returned early by the administration of Luis Arce, something that allegedly also generated economic damage.

According to information provided by the Prosecutor’s Office this Tuesday, the case against Rojas is investigating economic damage of at least $124 million derived from alleged irregular bond transactions.

In that context, Banegas recalled that he had already questioned these operations when they became public, describing them as a dubious operation and as conduct that was going to generate an economic loss for the State.

He explained that the transactions were related to Bolivia 2028 and 2030 bonds in international markets, which were denominated in dollars, but Rojas’s administration approved regulations to exchange these bonds into local currency while maintaining value.

According to his version, these operations generated negative economic effects not only for the State, but also for private investors.

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