Bolivia Criticizes IMF Recommendations
The Bolivian government has strongly contested the economic proposals put forth by the International Monetary Fund (IMF), asserting that they are based on outdated data and do not align with the current economic situation of the country.
Key Points:
- Old Data: The IMF’s recommendations for devaluation and fiscal adjustment were found to be relying on 2023 data, according to Economy Minister Marcelo Montenegro. He emphasized that the country’s economic growth in 2024 surpassed the IMF’s projections and that several initiatives aimed at boosting exports had already been successfully implemented.
- Discrepancies: Montenegro highlighted that numerous actions taken by Bolivia exceeded the IMF’s suggestions outlined in the Article IV Consultation report. These actions included measures to promote exports and the reintegration of Tax Refund Certificates to enhance export capabilities.
- Financial System Performance: Contrary to negative assessments, Montenegro pointed out that Bolivia’s default rate remained lower than the regional average, standing at 3.2%. He defended the government’s efforts to stabilize the financial system and rejected claims of economic mismanagement.
- Long-Term Solutions: Montenegro expressed confidence in addressing the country’s economic challenges through strategies such as import substitution and industrialization. He noted that while these measures may take time to yield significant results, they are crucial for sustainable economic growth.
Conclusion:
Bolivia’s response to the IMF’s recommendations underscores the government’s commitment to steering the economy in the right direction. By challenging outdated assessments and showcasing successful initiatives, Bolivia aims to demonstrate its proactive approach to addressing economic imbalances. The emphasis on long-term solutions and sustainable growth indicates a strategic vision for overcoming challenges and fostering economic resilience.
