In Bolivia, Tough Debt Decisions Await Paz
A restructuring process looms large amid a worsening fiscal deficit, low international reserves and a sizable repayment around the corner.
As Rodrigo Paz gets ready to become Bolivia’s next president, his administration will have pressing decisions to make immediately after the November 8 inauguration. While the country is under stress on many politically sensitive fronts, Paz should also prioritize the unsustainable government debt burden, which is already nearly as large as the entire economy. Several solutions are available, and all require decisive action to address a longstanding issue. On the campaign trail Paz ruled out an International Monetary Fund rescue package, however his stance will be put to the test in the...
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