The Ministry of Economy and Finance of Bolivia has announced that the countrys public external debt balance is at a favorable level compared to international standards.As of May 2023, Bolivias external debt stands at 29.2 percent of its Gross Domestic Product (GDP), which is below the reference limits set by global organizations.The amount of foreign debt in May was recorded at US$13.327 billion, accounting for 29.2 percent of Bolivias GDP.This represents a decrease in external debt relative to GDP from 2020 to 2023, mainly due to Bolivias robust economic growth and improved capacity for external financing.The Ministry emphasized the reduction in external debt from US$11.574 billion (32.1 percent of GDP) in November 2020 to the current level of US$13.327 billion (29.2 percent of GDP) in May 2023.Bolivia successfully reduces external debt below international reference limits.
(Photo Internet reproduction)The Bolivian government attributes this positive trend to the countrys strong economic growth.The Vice Minister of Budget and Fiscal Accounting, Zenn Mamani, stated that Bolivias external debt of 29.2 percent of GDP is sustainable and among the lowest in the region.Mamani highlighted Bolivias responsible management of its external public debt, consistently reducing it as a percentage of GDP over the years.In 1987, the countrys debt accounted for 99.1 percent of the economy, but it has significantly decreased to 28.2 percent in 2006 and now stands at 29.2 percent as of May 2023.The vice minister also emphasized Bolivias favorable capacity for external debt, enabling the country to access credit for development projects due to sufficient international margins.The governments debt policy focuses on investing in infrastructure, industrialization, and productive projects to stimulate economic growth and generate returns.Bolivias achievement in reducing foreign debt below international reference limits demonstrates its commitment to sound financial management and establishes a positive foundation for sustainable development in the country.