**Bolivia’s Congress Approves $1.9 Billion IMF Loan Amid Protest Threats**
*La Paz, Bolivia – September 19, 2026* – In a significant political move, Bolivia's Congress has approved a $1.9 billion loan from the International Monetary Fund (IMF), marking a crucial victory for President Rodrigo Paz. Despite the approval, trade unions have raised alarms over the austerity measures that accompany the loan, suggesting that these could lead to renewed social unrest.
The approval comes at a time when President Paz's Christian Democratic Party lacks a majority in Congress. However, centrist and right-wing parties, which have gained prominence following the decline of the leftist Movement for Socialism (MAS) party, rallied in support of the loan agreement. The MAS party now holds only two seats in the 130-seat lower house and none in the Senate.
In a statement following the vote, President Paz emphasized the importance of the loan, stating, “We are finalizing crucial agreements for Bolivia,” while acknowledging the difficult decisions that lie ahead due to rising global fuel prices exacerbated by the ongoing conflict in Iran. “International prices are forcing us to make complex choices,” he added.
The loan is intended to address a long-standing economic crisis in Bolivia, a situation that has been exacerbated by years of underinvestment in the country's natural gas sector. Once a significant source of revenue, natural gas exports have dwindled, leaving Bolivia in need of foreign currency to purchase imported fuel. In an effort to keep fuel prices affordable for the population, the government has heavily subsidized petrol and diesel, maintaining prices lower than those in Saudi Arabia. However, this subsidy has drained foreign reserves and contributed to a burgeoning black market for smuggled fuel.
Under the terms of the IMF program, which represents Bolivia’s first multi-year arrangement with the fund since 2006, President Paz is required to implement significant cuts to fuel subsidies and reduce government spending. In line with these requirements, the government has already raised fuel prices and plans to eliminate the subsidy entirely by January 2027. Officials assert that the loan will also facilitate approximately $5 billion in additional financing from the World Bank and other financial institutions.
Despite the potential benefits, the Bolivian Workers’ Central, the nation’s principal union federation, has expressed strong opposition to the austerity measures linked to the loan. Union leaders warn that the cuts will lead to increased living costs for many families already struggling to make ends meet. The federation has previously organized protests, including road blockades that paralyzed large portions of the country in June and July, demanding the resignation of President Paz.
In response to the unrest, Congress recently extended a state of emergency for an additional 90 days, a measure initially declared to facilitate the clearing of blocked roads and restore order.
As Bolivia navigates this complex economic landscape, the implications of the IMF loan and the accompanying austerity measures remain to be seen. The government faces the dual challenge of stabilizing the economy while addressing the concerns of a populace wary of further financial strain. The situation continues to evolve as both supporters and opponents of the loan prepare for the potential ramifications of the Congress's decision.