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Transit unions went on strike to request a six-month suspension of debts due to the economic decline produced by the COVID-19 pandemic.
Bolivia's finance Minister Marcelo Montenegro Thursday announced that an agreement on debt payments was reached with transport sector representatives to secure the continuity of public transportation services.
Besides establishing a six-month grace period without payment of interest or capital, the agreement prohibits any monthly payment increase due to the suspension.
The deal also offers options for rescheduling debts while banning the payment of deferred interest installments as a condition for accessing funds.
"In no case will financial institutions be able to increase the interest rate agreed in the initial contract. Financial institutions will not require additional guarantees or updated appraisals," the Agreement reads.
Bolivia's government has imported a shipment of 650,000 Covid tests which will be available to the population for free. The coup regime carried out just 230,000 tests during their whole time in power. pic.twitter.com/qUm0NUhsLo
The Financial Fiscal Authority (ASFI) will publish the legal norms to support the deal. At the same time, the Economic Ministry will analyze the possibility of establishing funds to grant credit lines.
Announcing the strike's lifting, union leaders expressed their satisfaction even though the National Drivers Confederation (NDC) and the Heavy Transport Union did not support the deal.
"The country needed accurate answers for all borrowing sectors that had deferred their credits in the previous management. This is an integrated solution for the Bolivian economy," Montenegro said.