Overview
- Bolivia’s Congress voted to authorize a roughly $1.9 billion, 36‑month IMF Extended Facility this week, and the government moved immediately to remove the diesel subsidy with prices tied to international costs.
- The diesel subsidy had been costing the state about $55 million per week and will be adjusted to import parity under a new pricing rule that initially set diesel near Bs17.95 per liter.
- Gasoline will remain subsidized through December and is scheduled to lose its subsidy in January 2027 under existing decrees.
- The government announced targeted relief to soften the shock, including a new Bono PEPE payment to about 2.9 million people and preferential credit lines for transporters, producers and small businesses, while unions and transport groups have threatened protests and the state of exception was recently extended.
- Leaders say IMF approval on Oct. 2 could trigger an initial disbursement of about $250 million and unlock up to $5 billion more from other multilateral lenders, a notable policy shift after nearly two decades of governments that rejected IMF programs.