Bolivia Congress Approves $1.9B IMF Loan Amid Austerity Protests

Bolivia's Congress has approved a $1.9 billion loan agreement with the International Monetary Fund, clearing the final legislative hurdle for a three-year financing program aimed at stabilizing the country's deep economic crisis. The deal, which still requires approval from the IMF's executive board before funds can be disbursed, is conditioned on austerity measures, including the immediate elimination of diesel subsidies. President Rodrigo Paz announced the end of diesel subsidies just hours after the congressional vote, stating that diesel would now be sold at international prices. The move is a key requirement of the IMF program and aims to address chronic fuel shortages and drain on foreign reserves. To cushion the impact, the government announced approximately $79 million in cash assistance for about 2.9 million Bolivians, along with preferential loans for truckers and small businesses. The IMF program, Bolivia's first multiyear arrangement with the fund since 2006, is designed to rebuild dwindling foreign reserves and stabilize an economy marked by high inflation and weak growth.