Bolivia's President-Elect Secures IMF Backing Amid Economic Crisis in Key Washington Meeting
By J. MACHICADO
Washington, D.C. – November 2, 2025.- In a pivotal encounter signaling potential international support for Bolivia's turbulent economy, President-elect Rodrigo Paz Pereira met with IMF Deputy Managing Director Nigel Clarke on Friday, discussing strategies to tackle the South American nation's deepening fuel shortages, dollar scarcity, and broader macroeconomic woes.
“The IMF stands ready to support Bolivia in seizing the opportunity to advance economic reforms to the benefit of the Bolivian people.” — Nigel Clarke, IMF Deputy Managing Director
The meeting, held during Paz's ongoing U.S. tour following his October 19 runoff victory that ended two decades of leftist rule, was described by Clarke as "very constructive." In a post on Instagram and X (formerly Twitter), Clarke highlighted the dialogue's focus on “Bolivia’s complex and multifaceted economic challenges,” adding that the IMF “stands ready to support Bolivia in seizing the opportunity to advance economic reforms to the benefit of the Bolivian people.”
Paz, a centrist senator from the Christian Democratic Party who clinched 55% of the vote against conservative rival Jorge "Tuto" Quiroga, echoed the optimism in his own X post, thanking Clarke for “the openness and frank dialogue on Bolivia's economic challenges and opportunities.” He reaffirmed his administration's pledge for “sustainable and transparent growth,” emphasizing a gradual reform approach to avoid abrupt shocks.
At the heart of the discussions were Bolivia's acute vulnerabilities: chronic fuel deficits that have led to widespread blackouts and rationing, coupled with a severe foreign exchange crunch that has depleted reserves to critically low levels. Investors and analysts have viewed IMF engagement as essential for Paz's incoming government, which assumes office in January 2026, to stabilize markets and restore confidence.
“This is a strong start for Paz... the IMF's commitment is a guarantee of backing and cooperation to stabilize the Bolivian economy.” — Bolivian Economic Commentator
Clarke's assurances of IMF cooperation were interpreted as a green light for tailored assistance, potentially including technical aid and financing programs to underpin reforms like subsidy restructuring and export diversification.
Local media reported that the fund explicitly pledged to “help Bolivia” navigate its fuel and dollar crises, with Clarke stating, “We will support economic reforms for the benefit of the Bolivian people.”
The rendezvous underscores Paz's proactive foreign policy pivot, building on pre-election IMF briefings with candidates that underscored the need for fiscal discipline. As Bolivia grapples with inflation hovering above 5% and GDP growth projections below 2% for 2025, Clarke—a Jamaican economist who joined the IMF leadership in late 2024—drew from his nation's successful reform playbook under IMF guidance, subtly positioning the institution as a partner in Bolivia's recovery.
Paz's team has signaled that further talks with multilateral lenders, including the World Bank, are on the agenda during his Washington visit. For now, the Clarke meeting has injected cautious optimism into La Paz's financial circles, with markets edging up slightly on news of the IMF's supportive stance.
As Paz prepares to inherit a nation teetering on the brink, this early endorsement could prove instrumental in averting deeper turmoil—or at least buying time for the reforms he promises will prioritize the “Bolivian people.”
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