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Bolivia Eliminates Diesel Subsidy After IMF Loan Approval
Source: Bloomberg
Fiscal Policy & BudgetEnergy Markets & PricesEmerging MarketsMonetary Policy
Bolivia completely eliminated its diesel subsidy after the Senate approved a $1.9 billion IMF loan contingent on spending curbs. The move strengthens fiscal-adjustment efforts and supports IMF financing, but it will raise domestic diesel costs and creates inflationary and social-risk headwinds.
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