The left-wing government has decided to repay the $ 347.6 million loan in Bolivia

The Latin American country Bolivia has set an example. The left-wing government has decided to repay the $ 347.6 million loan taken from the International Monetary Fund (IMF). The previous government took this loan. The right-wing government took the loan after the previous government overthrew Bolivia’s President Ivo Morales in 2019, following several IMF conditions. The current government of Bolivia has announced that it will immediately return the entire amount to the IMF along with the interest on that debt. She is doing this because the conditions on which the loan was given by the IMF have been considered by the current government as an unfair intervention of the IMF in the country’s economy.

After Ivo Morales, an interim government was formed under the leadership of Janine Anez. He had said that this debt is necessary to get the country out of the economic crisis. But now the Central Bank of Bolivia has said in a statement that the financial burden on Bolivia has increased randomly due to this debt. Due to the change in the currency exchange, by February 2021, this amount increased to $ 1.96 million. Apart from this, the additional burden of additional $ 4.7 million due to commission and interest went on the country.

The Central Bank has stated that the IMF’s fiscal, financial, currency exchange and monetary policy terms are against the sovereignty and economic interests of the country. After considering all these things, it was decided to return the loan. The Central Bank has said that criminal and civil action will now be initiated against the administrative officials in the country who had joined the negotiations with the IMF for this loan.

Bolivia is one of the poorest countries in Latin America. In recent months it has been heavily hit by the corona virus epidemic. Despite this, the Bolivian government’s decision to return the debt is considered to be extremely important. Countries usually try to get additional loans on such occasions. But like the government of Ivo Morales, the current government is also trying to give a new shape to the country’s economy and development policy.

The left-wing government has decided to repay the $ 347.6 million loan in Bolivia
The left-wing government has decided to repay the $ 347.6 million loan in Bolivia

Despite the current financial crisis, the Bolivian government decided this week that every person living in the far-flung areas of the country would be provided electricity within a timeframe. For this, Bolivia’s Ministry of Hydrocarbons and Energy has approved a plan of $ 100 million. The ministry said that these funds will be made available by the Inter American Development Bank KFW. The aim of the government is to provide electricity to about 40 thousand families who have not got this facility till date.

Former Ivo Morales said that providing electricity to all is the country’s priority, as it is necessary for modernization and development of rural areas. Morales’s government started a plan to provide electricity to all. But Janine Anez’s government stopped this plan. Now the new government has started the work of taking it forward again. The current government of Bolivia has also announced that three air power plants built in the country will start power supply from May.