Bolivia's Congress backs $1.9 billion IMF program amid union backlash
Bolivian legislators approved a $1.9 billion loan agreement with the IMF, a move welcomed by President Rodrigo Paz but condemned by major labor unions.
Bolivia's Congress completed approval of a $1.9 billion International Monetary Fund program, with the Senate confirming the pact after the lower chamber's earlier vote. The three-year arrangement is intended to replenish dwindling foreign reserves and stabilize an economy plagued by high inflation and sluggish growth. President Rodrigo Paz hailed the vote as a historic step, while Economy Minister Christian Morales argued it would encourage additional financing from institutions like the World Bank and the Inter-American Development Bank.
The deal mandates austerity measures, notably the phase-out of fuel subsidies, prompting the Bolivian Workers' Central and other unions to denounce the plan as harmful to families. Earlier protests that blocked roads led to a 90-day extension of a state of emergency, allowing military involvement and limited civil liberties. Despite lacking a parliamentary majority, Paz's Christian Democratic Party secured support from centrist and right-leaning lawmakers, while the former ruling Movement Toward Socialism holds only two seats in the lower house and none in the Senate.
Why it matters
The loan could reshape Bolivia's economy but may also trigger social unrest over subsidy cuts.
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