Bolivia rejects Moody’s report and reaffirms power of financial and alternate charge coverage

The Government of Bolivia rejected this Friday’s Moody’s report that downgraded the nation’s score with the danger of its macroeconomic stability and reaffirmed its financial and alternate charge coverage to maintain stability.

“Moody’s rating agency is based on a conjunctural situation and ignores the other macroeconomic variables that contribute to national stability, price stability, economic growth, the decrease of the fiscal deficit from 12.7 percent in 2020 to 7.2 percent in 2022, and the economic growth achieved despite the adverse international context,” mentioned the Ministry of Economy.

Likewise, it ratified compliance with the exterior debt service, opposite to what was said by Moody’s score company, which revised the danger score from B2 to Caa1.

Moody’s Investors Service downgraded Bolivia’s score as a long-term issuer in native and overseas forex this Friday and warned of a vulnerability that threatens macroeconomic stability.

Moody’s score was thought-about “hasty” by the Government as a result of it didn’t take into account all of the macroeconomic variables of Bolivia and its uncontrolled inflation in a posh worldwide context of rising rates of interest, financial institution failures, the disaster in Ukraine, and different parts that affected the world financial system.

According to the Ministry of Economy, in 2022, the motion of web worldwide reserves (NIR) was influenced by the hostile world context, similar to the rise in world gas costs, which meant a rise within the backed quantity of fuels.

However, the Ministry of Economy assured that the insurance policies of the nationwide financial mannequin allowed for sustaining worth stability and the buying energy of Bolivian households.

It ratified that Bolivia maintains the bottom inflation charge in South America because of the measures applied by the Government to stabilize the costs of the household basket and thus shield its inhabitants.

He recalled that the era of Bolivian revenue isn’t restricted to the export of pure gasoline, neither is the vitality coverage restricted to those gross sales.

“It does not take into account the progress achieved for the export of electric energy, urea, minerals, lithium carbonate, and potassium chloride, whose sales levels will increase in the short term, as well as the income generated by the commercialization of steel from the Mutun, among others”, he added.