The Bolivian central bank in February 2021 returned to the International Monetary Fund a loan of nearly KSh38 billion ($346.7 million dollars), plus interest, to avoid unnecessarily burdening its economy with debt, Reuters reports.
The multi-billion loan facility was approved by the interim government run by Jeanine Anez following the resignation of leader Evo Morales in 2019.
“This loan, in addition to being irregular and onerous due to financial conditions, generated … millions in costs to the Bolivian state,” the bank said in a statement, according to Reuters.
The Bolivian bank announced on February 17 that the IMF loan had been arranged irregularly by Anez’s government.
The bank returned the cash to the IMF, a sum which included Ksh510 million (US$4.7m) in interest and commission.
Bolivia is classified by the World Bank to be a lower-middle-income country with a GDP per capita of US$3552.
The bank reportedly said it would take action against officials who negotiated the loan with IMF.