Bolivia's Congress Approves US$1.9 Billion IMF Deal

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Bolivia's Congress has approved a US$1.9 billion International Monetary Fund (IMF) package, welcomed by President Paz. If the IMF's board approves the deal, it could unlock additional financing from other international organizations and support reforms aimed to attract private investments.

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New Funding

On Friday, September 18, Bolivia's Congress approved a US$1.9 billion package from the International Monetary Fund (IMF) as the new government of Rodrigo Paz seeks to re-engage with international organizations.

The IMF agreement is intended to help Bolivia rebuild its declining foreign reserves and is tied to a reform program aimed at maintaining fiscal sustainability and reducing inflation. The deal still needs IMF board approval before it can be implemented.

The president welcomed Congress's approval of the deal. Later on September 18, Paz announced the elimination of the diesel subsidy, which governments had kept in place for years to reduce the impact of price changes on communities.

"Some decisions are difficult because international prices are forcing us to make complex choices," said Paz on September 18, while discussing fuel subsidies.

In July, the IMF said that an agreement with Bolivia "is expected to help catalyze additional financing from the World Bank, the Inter-American Development Bank, and other development partners, contributing to a broader financing package of over US$5 billion over the program period."

The next few months will be key for Paz's government as it navigates opposition to the new policies needed to secure implementation of the IMF deal. Paz faced several weeks of protests against his government earlier in 2026, while opposition groups demanded his resignation a few months after taking power.

At the same time, the IMF hopes the deal will help Bolivia's government strengthen its legal frameworks to promote private investment growth and unlock local development. With this, Paz hopes to attract investment into sectors such as mining and hydrocarbons.

The Lithium Sector

One sector ripe for investment is Bolivia's lithium industry. The South American country ranks among the top three countries in terms of resources. However, its industry remains considerably less developed than those of its neighbors Argentina and Chile.

While billions of dollars have been pledged by companies to develop Argentina's and Chile's lithium resources, Bolivia's previous government signed two lithium contracts with Chinese and Russian companies. However, the agreements have yet to materialize into producing assets and fell under public scrutiny in 2025.

To put things in perspective, Industrial Info Resources data show eight lithium projects in Bolivia representing investments of US$4 billion. In comparison, IIR is tracking 30 projects worth US$11.88 billion in Chile and 85 projects amounting to US$26.19 billion in Argentina.

More importantly, while Argentina and Chile have developed larger commercial lithium industries and exports, Industrial Info Resources has identified one operational plant in Bolivia, the Uyuni Llipe plant, with a capacity of 15,000 tonnes of lithium carbonate per year. For 2026, YLB, the national lithium company and operator of the plant, expects lithium carbonate production to reach 3,600 tonnes.

The IMF-backed reforms could help Paz set the ground for more stable fiscal and legal frameworks to attract investment into Bolivia's vast lithium resources, as well as other mining segments and the natural gas sector.

In terms of metals and minerals projects in Bolivia, Industrial Info Resources data show a total of 90 projects representing US$6 billion in investments.

Key Takeaways

• The Bolivian Congress approved a US$1.9 billion deal with the IMF.
• The agreement has yet to be approved by the IMF board.
• The IMF-backed reforms could improve conditions for private investment in Bolivia's mining sector.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).