World Bank Approves $200m Loan to Protect Vulnerable Bolivians Amid Economic Crisis

PEPE is designed as a rapid-response safety net to cushion the poorest households during a period of heightened economic pressure.

The World Bank Group’s Executive Board of Directors has approved a US$200 million loan to support the Plurinational State of Bolivia in protecting households most affected by the ongoing economic crisis and strengthening the country’s social protection system to better respond to future shocks.

The financing will help Bolivia expand emergency support to vulnerable families facing rising prices and income disruptions, while also modernizing social assistance delivery to ensure greater efficiency, transparency, and preparedness.

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Supporting Bolivia’s Extraordinary Program for Protection and Equity (PEPE)

At the centre of the operation is the design and implementation of the Extraordinary Program for Protection and Equity (PEPE) — a temporary government assistance initiative providing financial support to families most at risk from inflation and economic instability.

The program is expected to directly and indirectly benefit around eight million people, including:

• Older adults without contributory pensions

• People with disabilities

• Families with children enrolled in public schools

• Pregnant women without health insurance

• Children under the age of two

PEPE is designed as a rapid-response safety net to cushion the poorest households during a period of heightened economic pressure.

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Strengthening Bolivia’s Social Protection System for the Future

Beyond immediate crisis support, the World Bank operation will help Bolivia strengthen the foundations of its broader social protection system.

Key reforms include:

• Improved targeting to ensure assistance reaches the poorest households

• Modernized delivery mechanisms for faster and more reliable payments

• Stronger inter-institutional coordination across government agencies

• Enhanced efficiency and transparency in public spending

These measures aim to maximize the impact of every Boliviano invested, ensuring resources are used effectively and equitably.

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World Bank Reaffirms Partnership with Bolivia

World Bank Vice President for Latin America and the Caribbean Susana Cordeiro Guerra emphasized the Bank’s close collaboration with Bolivia’s new authorities and its support for modernization and results-focused governance.

“This project supports Bolivia’s efforts to modernize the delivery of social assistance, strengthen public administration, and ensure programs are more efficient, transparent, and results-focused,” she said.

“We remain committed to working in close partnership with the Government to advance its priorities to restore macroeconomic stability, strengthen confidence and investment, and foster private sector–led growth and job creation.”

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Government Sees Loan as Signal of Confidence

Bolivia’s Minister of Economy and Public Finance, José Gabriel Espinoza, welcomed the World Bank’s support as a strong signal of international confidence in Bolivia’s stabilization efforts.

“The World Bank’s support is a clear signal of confidence in the steps being taken to organize and stabilize the Bolivian economy, within a framework of democracy, institutional integrity, and social stability,” he said.

He added that the partnership is critical for improving safety nets and ensuring no one is left behind.

“Through programs like PEPE and by strengthening our social protection system, we are laying the basis for generating quality employment, improving productivity, and consolidating a more equitable, sustainable, and inclusive growth.”

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Implementation and Payment Delivery

The Ministry of Economy and Public Finance will serve as the main implementing agency for the project.

The Public Administrator of Long-Term Social Security will play a central role in:

• Determining eligibility

• Administering beneficiary selection

• Making payments to PEPE recipients

This institutional arrangement is intended to ensure effective delivery and accountability.

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Building Resilience, Equity, and Inclusive Growth

The World Bank-supported operation represents an important step in Bolivia’s efforts to protect vulnerable households during crisis while building stronger, more resilient social systems for the future.

By combining emergency assistance with long-term reforms, the initiative aims to strengthen social stability, restore confidence, and lay the groundwork for inclusive economic recovery and sustainable job creation.