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Bolivia’s government said that it will honor upcoming dollar bond payments to private investors, including about $356mn in principal and interest on its 4.5% 2028s due in late-March. It already paid the coupon on $850mn of its 7.5% 2030s earlier this month. Finance Minister Jose Gabriel Espinoza said that payments to private bondholders due March 20 are fully guaranteed, with reserves accumulated at the central bank. To preserve scarce foreign currency reserves, Bolivia plans to swap 67% of the 2028s held by domestic public institutions into local currency or dollar-indexed local debt. The move aims to ease pressure on dollar reserves, though it will increase domestic debt, which already reached ~70% of GDP in 2024, more than double its external debt. The government expects no major additional external payments this year and anticipates over $8bn in multilateral loans pending congressional approval, which would support financing needs.
Bolivia’s dollar bonds traded marginally down. For instance, its 4.5% 2028s were down 0.2 points to 96.7, yielding 7.97%.
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