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News > Bolivia

Bolivian Govt Reaches a Deal With Striking Transit Workers

  • Carriers block an avenue during a strike, La Paz, Bolivia, Jan. 12, 2021.

    Carriers block an avenue during a strike, La Paz, Bolivia, Jan. 12, 2021. | Photo: EFE

Published 14 January 2021

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.


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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.

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.

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