Bolivia scraps diesel subsidies and clinches $1.9bn IMF deal as unions threaten fresh unrest

From the Newshound archive · first published 19 September 2026 · last updated 20 September 2026.

Bolivia's Congress has ratified a $1.9 billion, three-year IMF loan programme intended to replenish the country's dwindling foreign reserves and stabilise an economy squeezed by rising prices and sluggish growth. Within hours of the Senate's final vote, President Rodrigo Paz announced the immediate removal of diesel subsidies covering Bolivia's trucks, buses and tractors. Economy Minister Christian Morales said the deal could open the door to a further $5 billion from the World Bank and other lenders. The IMF executive board must still approve the agreement before any funds are disbursed.

Gasoline subsidies, used mainly in private cars, remain in place for now, though Paz has already trimmed them over recent months.