Global Biz

Bolivia to end 2010 with $2.7 billion external debt

(Xinhua)
Updated: 2010-12-22 14:00

LA PAZ, Bolivia- Bolivia's external debt will exceed $2.7 billion, $50 million more than in 2009, the Central Bank of Bolivia (BCB) said Tuesday.

Related readings: Bolivia, China sign deal to build telecom satellite  Final accord reached at Cancun despite Bolivia's objection

Regarding bilateral creditors, Venezuela is in first place with $271.9 million , followed by Brazil with $95 million , and China with $81.5 million, the BCB said.

Bolivia also owes $53.7 million to Germany and $20.6 million to the Republic of Korea.

Bolivian Development and Planning Minister Viviana Caro said the country's external debt is due to governmental development projects.

"We are managing our external debt with a specific strategy. The government is using its resources, but it is also using external resources in favorable conditions for many important development projects," Caro said.

Meanwhile, Bolivian Economic and Finance Minister Luis Arce Catacora said 62 percent of the budget for 2011 will come from its own resources, and 38 percent will come from external credit, which means that the external debt will increase even more in 2011.

Bolivia's main creditors are multilateral credit sources which represent $2.1 billion of the debt.

Bolivia owes the Andean Development Corporation (CAF), one of its main creditors, $1.1 billion.

The Inter-American Development Bank (IDB) is in second place representing $538.3 million in debt, followed by the World Bank (WB) with $344 million .