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Goal 8: Develop a global partnership for development

Bolivia

2009


Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term


Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term

Statistics

Figure 12


Source: UDAPE, based on Central Bank of Bolivia (BCB) data.

Interpretation

Total debt service as a percentage of fiscal revenue

Total debt service as a percentage of fiscal revenue increased in fiscal years 2007 and 2008 (to 31.7 per cent in 2008). The increases of the past two years were largely due a 120 per cent increase in the domestic debt of the Central Bank of Bolivia (BCB). The external debt also increased by 10.6 per cent, which translated into higher principal and interest payments. In 2008, the BCB’s domestic public debt doubled as a result of the placement of government securities.

Factors explaining the decline in the growth of this indicator include: (i) a 43.7 per cent increase in public revenue in 2008 vis-à-vis 2007; and (ii) the reduction in external debt servicing, due to debt forgiveness under the Multilateral Debt Relief Initiative (MDRI) and the Highly Indebted Poor Countries (HIPC), which in 2008 reduced debt service outflows by US$ 279 million. (Figure 12) To compare this indicator’s outcomes with the thresholds established by the new debt sustainability evaluation framework, the numerator needs to include private debt service, in addition to domestic and external public debt service. After making that adjustment, the debt indicator for Bolivia for 2008 is 50.1 per cent, that is to say, above the established debt sustainability thresholds (25 per cent-30 per cent-35 per cent).

Related Links

MDG Monitor Country Profile Bolivia

The Official United Nations site for the MDG Indicators

World Bank Country Brief Bolivia