IDB Group, Bolivia Agree on Major $4.5 Billion Support Package

LA PAZ - The Inter-American Development Bank Group (IDB Group) and Bolivian authorities agreed on a $4.5 billion package for 2026-2028 to support the new government's ambitious reform agenda to stabilize the economy, restore growth, and expand job creation. It includes targeted financing for social protection, private investment, infrastructure, budget support, and capital mobilization. The package represents nearly six times the Bank's previous allocation to Bolivia.

President Ilan Goldfajn reaffirmed the IDB Group's support for Bolivia's economic stabilization and pro-growth reforms during a historic visit - the first by a Bank president in 15 years. It marks a new phase of collaboration, focused on helping the country address current challenges while laying the groundwork for sustainable growth.

"We are here to support Bolivia to drive growth that benefits the entire population," said Goldfajn. "Stabilization is essential, but not sufficient. Lasting growth depends on a shared effort, including by the private sector."

"We welcome the support and visit of the Inter-American Development Bank to our country. We fully agree that economic stabilization is only the first step; the real challenge lies in building a sustainable and equitable growth model that reaches every Bolivian household and translates into public works, infrastructure, health, education, and jobs," said Bolivian President Rodrigo Paz.

In the first year, the IDB Group expects to deploy about $2 billion to support a stabilization program that protects the most vulnerable segment of the population and helps restore macroeconomic stability. Immediate actions include direct financing for cash transfers to low-income households. This is part of a coordinated multilateral effort to support fiscal consolidation while helping the most vulnerable.

The IDB Group is also supporting the Bolivia Crece agenda to accelerate economic recovery and attract investment. The program focuses on removing bottlenecks, increasing productivity, and advancing reforms at limited fiscal cost. This includes support for execution capacity, regulatory reform, and key investments in mining, energy, agribusiness, and tourism - together with efforts to strengthen trade and logistics in the Southern Bioceanic Corridor, supported by the IDB Group's flagship South Connection program.

Beyond financing, the IDB Group brings technical capacity, more than 65 years of experience, and practical solutions drawn from across Latin America and the Caribbean to support Bolivia's agenda. As part of this effort, the IDB is providing non- reimbursable resources of up to $4.5 million in technical assistance to strengthen project preparation and pre-investment for priority initiatives, including under Bolivia's national development plan (PDES), improving access to public and private financing and accelerating execution.

With limited fiscal space, the strategy depends on efforts by all, including the private sector. IDB Invest, the IDB Group's private-sector arm, will expand its portfolio in Bolivia twentyfold, investing up to $450 million over the next three years in agribusiness, infrastructure, industry, and financial inclusion. Enabling reforms include 24-hour customs operations in Santa Cruz, streamlining procedures to support investments, expanding IDB Pay for digital payments and formalization, and simplifying business registration.

To support this, the IDB Group and the International Finance Corporation (IFC) will mobilize private investment at scale, supporting competitive local companies and advancing projects in mining, agribusiness, tourism, energy, sustainable infrastructure, financial inclusion, and value-added manufacturing. In parallel, the IDB Group is discussing ways to advance efforts with the U.S. International Development Finance Cooperation (DFC) to mobilize private capital and support high-impact projects across sectors.