Stability and New Job Growth: Bolivia Gets $500m World Bank Boost for Reforms

The program rests on two pillars, each backed by policy actions the Government has already adopted as part of its economic reform agenda.

The World Bank Group has approved US$500 million in budget support for Bolivia to help strengthen public finances, protect poor and vulnerable households, and create conditions for economic growth to resume. The financing supports government measures designed to restore fiscal sustainability and encourage businesses to invest, expand their operations, and create jobs. It is the first of two planned operations supporting Bolivia's efforts to stabilize the economy and build a stronger foundation for private sector growth.

The program rests on two pillars, each backed by policy actions the Government has already adopted as part of its economic reform agenda. One focuses on putting public finances on a more sustainable footing and safeguarding households that are most exposed to the pressures of economic adjustment. The other addresses conditions affecting private investment, with measures covering access to finance, agricultural exports, and opportunities for businesses to enter or expand in the economy.

For Bolivia, the financing provides liquidity through general budget support during an adjustment period as the Government puts its policy measures into practice. The operation draws on analytical work by the World Bank Group team, developed through collaboration with the Government, stakeholders' discussions, and coordination with development partners. A systematic assessment of the supported effects policies also helped inform the operation and its focus on fiscal sustainability, household protection, and growth.

Protecting households through economic adjustment

Bolivia's Minister of Economy and Public Finance, Christian Andrés Morales Burgos, described the approval as an endorsement of the Government's measures to stabilize the economy and restore confidence. He said the administration of President Rodrigo Paz is working toward greater fiscal sustainability, with protection for vulnerable households and better conditions for private investment forming central parts of that effort. Morales Burgos emphasized that the Government wants macroeconomic stability to bring practical benefits to Bolivians through more jobs, wider economic opportunities, and sustainable economic growth.

Opening more opportunities for businesses and investment

Changes supported under the second pillar include a modernized regulatory framework for fintech providers and easier lending requirements, measures intended to expand access to finance. Efforts to facilitate agricultural exports and allow greater private participation in the electricity sector are also part of the package to improve investment conditions. These reforms seek to give businesses a more supportive environment in which to invest and grow, helping private sector activity contribute to job creation and the country's economic recovery.

Building a coordinated partnership for recovery

Ariel Yepez, World Bank Director for Bolivia, Chile, Colombia, Ecuador, Peru, and Venezuela, described the operation as the opening of a new chapter in the institution's partnership with Bolivia. He said the support combines financing with technical expertise to back the country's own transformation agenda at a pivotal moment for stable growth, private investment, and employment. The program forms part of a coordinated package of international support involving the International Monetary Fund, the Inter-American Development Bank, and CAF, the Development Bank of Latin America and the Caribbean.