Bolivia: 2007 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Bolivia
IMF Staff Country Reports, July 26, 2007
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- Bolivia: 2007 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Bolivia
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Bibliographic details
- Published: July 26, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451805826.002
Summary findings
- Reforms are needed to make the budget a more effective developmental and poverty-reducing tool.
- The fiscal position has shifted into a substantial surplus.
- Public debt has been substantially reduced.
- Financial sector stability has improved, although dollarization is still high.
- Efforts to address remaining financial sector vulnerabilities should be intensified.
Financial sector vulnerabilities and priorities
- Dollarization remains high and poses credit risk.
- Priority reforms include:
- Adoption of prudential regulations to mitigate market risk.
- Adoption of prudential regulations to mitigate credit risks from dollarization.
- Adoption of legislation governing corporate bankruptcy/restructuring.
Policy implications for the public sector and macroeconomic management
- Strengthen budgetary reform to enhance developmental and poverty-reduction outcomes.
- Continue measures that supported the shift to a substantial fiscal surplus.
- Maintain focus on reducing public debt and preserving financial stability through regulatory improvements.