IDB approves $450-million loan to help Bolivia confront effects of COVID-19

RESOURCES WILL HELP FINANCE COUNTRY’S EFFORTS TO MITIGATE PANDEMIC’S ECONOMIC EFFECTS THROUGH EXISTING MONEY TRANSFER PROGRAMS

The Inter-American Development Bank (IDB) has approved a $450-million loan to help Bolivia ensure minimum living standards for vulnerable sectors of the population during, and in the aftermath of, the coronavirus pandemic.

To mitigate income losses caused by the crisis, the Government of Bolivia is implementing large-scale compensatory policies to help sustain consumption levels in the most vulnerable households.

The IDB resources will support money-transfer arrangements launched to cope with the crisis, prioritizing the Renta Dignidad (Dignity Income) and Canasta Familiar (Family Food Basket) programs for people who are 60 or older and do not have a pension.

The IDB loan will also cover up to 100% of electricity bills for those households that pay up to 120 bolivianos (US$17.20) a month. This will benefit some two million homes throughout the country by ensuring uninterrupted access to the service and preventing a widening of socioeconomic inequality.