Bolivia Approves Major IMF Programme and Removes Diesel Subsidies

2026, September 19

Bolivia

Bolivia’s Congress approved a $1.9 billion loan agreement with the International Monetary Fund as the government attempts to address severe shortages of foreign currency, weak reserves and a large fiscal deficit. The programme is expected to help unlock more than $5 billion in additional financing from international lenders.

As part of the agreement, President Rodrigo Paz announced the immediate removal of diesel subsidies, while gasoline subsidies remain in place for now. Labour groups have warned that higher fuel costs and spending reductions could increase poverty and trigger renewed unrest; the government has announced cash support and preferential loans intended to cushion the impact.