IDB approves $750 million package to back Bolivia's economic stabilization plan

The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved a $750 million financial package to support Bolivia’s comprehensive plan for macroeconomic stabilization and fiscal reforms. The decision, announced on November 05, 2026, from Washington, is intended to bolster the country’s efforts to restore economic balance and advance structural fiscal changes, according to a press release. The operation aligns with a broader reform agenda negotiated with international partners. It represents one of the IDB’s most significant recent commitments in the region. The package combines budget support with policy-driven lending instruments.

The IDB operation supports a broader reform program agreed with the International Monetary Fund (IMF) in October 2026 and backed by the international community. The initiative reflects coordinated multilateral engagement with Bolivia. It responds to the country’s need for macroeconomic stabilization. The reform agenda spans both fiscal and structural components. Multilateral backing underpins the credibility of the plan.

The package consists of a $500 million special development loan (SDL) to provide budget support and help stabilize the economy, and a $250 million policy-based loan to support critical fiscal reforms. Together, these instruments aim to put the country on a path toward fiscal sustainability. The SDL focuses on immediate budgetary needs. The policy-based loan is tied to reform milestones. The two components complement each other within the stabilization strategy.

The policy-based loan is the first in a series of two programmatic operations that are technically related but financially independent. This first operation will support reforms to strengthen macrofiscal planning and improve the efficiency of public spending by rationalizing energy subsidies and payroll expenditures. It also seeks to strengthen public investment while enhancing the tax system through simpler tax policies and stronger tax administration. The reform package targets spending efficiency and revenue mobilization. It lays the groundwork for subsequent operations.

The $500 million special development loan has a seven-year maturity and a three-year grace period. The $250 million policy-based loan carries a 20-year maturity and a 7.4-year grace period. Both loans have interest rates based on SOFR. The financial terms are structured to align with Bolivia’s reform timeline. The package underscores the IDB’s engagement with the country’s stabilization and fiscal sustainability goals.