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Bolivia is negotiating a $3.3bn Extended Fund Facility (EFF) with the IMF. Bolivia’s Finance Minister Espinoza argues that the country has already undertaken the tough reforms the IMF typically demands, including liberalising the currency and scrapping fuel subsidies, thereby making a deal more politically viable at home. Foreign reserves, which had fallen to just $52mn in March, have partially recovered to $206mn after a debt restructuring exercise with state pension funds. Bolivia is facing a severe cash crunch after making over $500mn in debt payments last month, with another $2.3bn in obligations still due this year, according to analysts. The analysts added that the root cause is a collapse in natural gas revenues, projecting a shortfall of over $5bn for the year. Credit rating agencies S&P and Moody’s have both upgraded Bolivia, reflecting cautious optimism. According to analysts, an IMF deal is seen as critical not just for the loan itself, but as a gateway to broader multilateral and investor funding.
Bolivia’s 4.5% 2028s traded stable at 93.5, yielding 12.4%
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