IDB Group Commits $4.5 Billion to Back Bolivia’s Economic Stabilisation and Growth Agenda

The agreement was announced during a historic visit to Bolivia by IDB Group President Ilan Goldfajn, the first by a Bank president in 15 years, signalling a new phase in the partnership.

 

The Inter-American Development Bank Group (IDB Group) and the Government of Bolivia have agreed on a $4.5 billion financing package for 2026–2028, marking a major expansion of support to stabilise the economy, restore growth and accelerate job creation under the country’s new administration.

The package—nearly six times the IDB Group’s previous allocation to Bolivia—will support a broad reform agenda spanning social protection, private investment, infrastructure, budget support and capital mobilisation, as the country confronts fiscal pressures and seeks to reignite inclusive growth.

The agreement was announced during a historic visit to Bolivia by IDB Group President Ilan Goldfajn, the first by a Bank president in 15 years, signalling a new phase in the partnership.

“We are here to support Bolivia to drive growth that benefits the entire population,” Goldfajn said. “Stabilisation is essential, but it is not enough. Lasting growth requires a shared effort, including strong private-sector participation.”

Bolivian President Rodrigo Paz welcomed the agreement, stressing the need to translate macroeconomic reforms into tangible outcomes.

“Economic stabilisation is only the first step,” Paz said. “The real challenge is building a sustainable and equitable growth model that delivers infrastructure, health, education and jobs for every Bolivian household.”

$2 Billion Upfront to Stabilise the Economy

In the first year alone, the IDB Group expects to deploy around $2 billion to support a stabilisation programme aimed at restoring macroeconomic balance while protecting the most vulnerable.

Immediate measures include direct financing for cash transfers to low-income households, forming part of a coordinated multilateral effort to support fiscal consolidation without deepening social hardship.

Bolivia Crece: Unlocking Investment and Productivity

Beyond stabilisation, the package supports the Bolivia Crece agenda, designed to accelerate recovery by removing bottlenecks, boosting productivity and advancing reforms at limited fiscal cost.

Key areas include:

• Regulatory reform and strengthened execution capacity

• Investment in mining, energy, agribusiness and tourism

• Improved trade and logistics along the Southern Bioceanic Corridor, backed by the IDB Group’s flagship South Connection programme

The IDB Group will also provide up to $4.5 million in non-reimbursable technical assistance to strengthen project preparation, improve access to financing, and accelerate execution under Bolivia’s national development plan (PDES).

Private Sector at the Centre of the Strategy

With limited fiscal space, the strategy places strong emphasis on private capital.

IDB Invest, the Group’s private-sector arm, will expand its Bolivia portfolio twentyfold, committing up to $450 million over the next three years to agribusiness, infrastructure, industry and financial inclusion.

Supporting reforms include:

• 24-hour customs operations in Santa Cruz

• Streamlined investment procedures

• Expansion of IDB Pay to support digital payments and formalisation

• Simplified business registration

In parallel, the IDB Group and the International Finance Corporation (IFC) will mobilise private investment at scale, advancing projects in mining, agribusiness, tourism, energy, sustainable infrastructure, financial inclusion and value-added manufacturing.

The IDB Group is also exploring collaboration with the U.S. International Development Finance Corporation (DFC) to crowd in additional private capital for high-impact projects.

A New Phase for Bolivia

The IDB Group said the scale and scope of the package reflect confidence in Bolivia’s reform agenda and the urgency of supporting stability alongside growth.

By combining large-scale financing, technical expertise and private-sector mobilisation, the partnership aims to help Bolivia move beyond crisis management toward a more resilient, investment-driven and inclusive economy.