MercoPress. South Atlantic News Agency

Bolivian gov't announces measures to curb ongoing crisis

In a press conference at the Casa Grande del Pueblo, Arce and five cabinet members presented the measures

The Bolivian Government of President Luis Arce Catacora announced Friday a series of measures to tackle the rise in food prices, fuel shortages, dollar scarcity, and the declining purchasing power of the Bolivian currency.

Key actions include deploying 1,480 additional military personnel to border patrols to curb the smuggling of 17 essential food products, alongside digitalizing transport permit records; normalizing diesel and gasoline supply in La Paz, Cochabamba, and Santa Cruz by May 26; authorizing savings products tied to UFV (Unidades de Fomento a la Vivienda) to preserve purchasing power; engaging the National Chamber of Industries to support implementation; rRevoking YPFB’s authorization to use virtual assets to curb dollar speculation; setting a 0% tariff until December 31 for importing baby chicks, sanitary supplies, and oil industry inputs; and limiting gasoline sales to vehicles converted to natural gas to prevent speculative resale, ensure fuel availability, and combat smuggling and speculation.

In a press conference at the Casa Grande del Pueblo, Arce and five cabinet members presented the measures targeting the smuggling of exports of “17 products which are among the main products of the family basket of goods.” In addition, the digitalization and centralization of records of the necessary permits for the transport of animals, rice, oil, and other products significantly more expensive abroad will be set in place.

Regarding diesel and gasoline, Arce insisted that with the tankers waiting to unload, supply will be normalized by May 26 in the departments of Cochabamba, La Paz, and Santa Cruz. “We are going to regularize 100% the fuel supply in the central axis of the country, that is to say, in the departments of La Paz, Cochabamba, and Santa Cruz,” Arce insisted.

Regarding the loss of purchasing value of the Bolivian currency and to ”preserve the good functioning of our financial system, the offer of savings products in UFV (Unidades de Fomento a la Vivienda) is authorized“, announced the Minister of Economy. ”This means that the national government through the Central Bank of Bolivia and in coordination with the ASFI (Financial System Supervisory Authority) will implement incentive and promotion measures for savings products that will be anchored to the movement and variation of the UFV so that these deposits grow and thus preserve the purchasing power of savings,” it was explained.