Bolivia: Sixth Review Under the Stand-By Arrangement and Requests for Modification and Waiver of Nonobservance and Applicability of Performance Criteria, Rephasing, and Reduction of Access
IMF Staff Country Reports, November 2, 2005
Source details
- Canonical URL
- Bolivia: Sixth Review Under the Stand-By Arrangement and Requests for Modification and Waiver of Nonobservance and Applicability of Performance Criteria, Rephasing, and Reduction of Access
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Bibliographic details
- Authors: Arrangement, Requests
- Published: November 2, 2005
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451805796.002
Summary and context
- Staff report for the Sixth Review under the Stand-By Arrangement and Requests for Waiver of Performance Criteria summarizes economic developments and a preliminary macroeconomic framework.
- Emphasis on policy continuity: "Policies to ensure continued macroeconomic stability will provide continuity and a framework for sound policy action by the successor government."
Key vulnerabilities identified
- Highly dollarized financial system subject to deposit runs.
- Fiscal position sensitive to revenue/expenditure-sharing arrangements between the central and subnational governments.
- These vulnerabilities "require policy vigilance."
Policy implications and recommendations (implicit in staff message)
- Maintain policies that ensure continued macroeconomic stability to support a smooth transition to a successor government.
- Implement measures to mitigate risks from dollarization and potential deposit runs in the financial system.
- Strengthen fiscal arrangements and safeguards around revenue/expenditure-sharing between central and subnational governments to reduce fiscal sensitivity.
Thematic coverage and keywords
- Subjects: Banking, Credit, Currencies, Economic sectors, Government debt management, Money, Public debt, Public financial management (PFM), Public sector.
- Keywords listed: budget constraint, budget proposal, CR, Credit, Currencies, draft budget framework law, draft law, financial system deposit, Government debt management, hydrocarbon revenue, ISCR, program inflation target, proposal, Public sector.