Bolivian bonds tumbled on Tuesday after President-elect Luis Arce from the left-wing Movimiento al Socialismo (MAS) party claimed victory in this week's election. Analysts and investors are hopeful that the next government will implement pragmatic policies to ensure economic stability. The country's non-financial public sector debt was 58% of GDP at the end of 2019, and it expects to reach 66% in 2021, the International Monetary Fund (IMF) said in April. Bolivia owes most of its debt to multilateral institutions, but it also has $2 billion in outstanding principal in the international bond market. Bolivia's US dollar-denominated debt was down in Tuesday's action. The benchmark 4.5% 2028 issue dropped four points in price to bid 81.875, putting the yield at 8.2%, according to data provider Refinitiv.
At least 5,000 small sugarcane growers in Santa Cruz at risk of disappearing and losing their patrimony, land, agricultural machinery and other material goods seized, as collateral, in entities of the financial system. Till September, 72% of the harvest advanced. Over-supply and price competition in the local market have caused the values to fall between 110 and 120 Bs per quintal ($15.78 - $17.21). The sector proposes to the government to export 30% of the processed sugar production in 2020 and to comply with the agreed commitments to purchase ethanol through the state-owned YPFB.
The aftermath of the pandemic continues in Bolivia. Figures from the latest report from the National Institute of Statistics (INE) reveal that exports fell by up to 29% through September. The numbers show a fall in imports of 33%, and a trade deficit of $127 million, the highest of the year, with hydrocarbon and mineral exports falling.
Housing credit grew by 7.1%, according to data from the Financial System Supervisory Authority (ASFI). Up to August, loans for the purchase of homes went from Bs 24.92 billion ($ 3.57 bn) in 2019, to Bs 26.7 billion ($ 11.77 bn). Eighty-two thousand sixty-two families were benefited, which represents a growth of 6.3%. Non-performing loans remained at 1.3%,
Active forest fires in Bolivia are down by at least 50% from last week. Santa Cruz, with 34 active fires, continues to be the most affected region, followed by Chuquisaca where five fires persist. La Paz and Beni have one. The area affected by the fire exceeds 1.8 million hectares. The Government of Santa Cruz updated the data and mentioned that there are 36 active fires, and seven of these are reactivations.