IDB Approves $750 Million Financial Package to Support Bolivia’s Economic Stabilization Plan 

WASHINGTON — The Board of Executive Directors of the Inter-American Development Bank (IDB) approved a $750 million financial package to support Bolivia’s comprehensive plan for macroeconomic stabilization and fiscal reforms.  

The IDB operation supports a broader reform program agreed with the International Monetary Fund (IMF) in October 2026 and backed by the international community.   

The IDB package consists of a $500 million special development loan (SDL) to provide budget support and help stabilize the economy, and a $250 million policy-based loan to support critical fiscal reforms and put the country on a path toward fiscal sustainability.  

The policy-based loan is the first in a series of two programmatic operations that are technically related but financially independent. This first operation will support reforms to strengthen macrofiscal planning; improve the efficiency of public spending by rationalizing energy subsidies and payroll expenditures, and strengthening public investment, while enhancing the tax system through simpler tax policies and stronger tax administration.  

The $500 million special development loan has a seven-year maturity and a three-year grace period, while the $250 million policy-based loan has a 20-year maturity and a 7.4-year grace period. Both loans have interest rates based on SOFR.