Bolivia fires economy minister amid economic crisis

Bolivian President Rodrigo Paz fired Economy Minister Jose Gabriel Espinoza on Friday after legislators voted to remove him for failing to appear before Congress to answer questions about his handling of a severe economic crisis.

Paz named Environment Minister Oscar Mario Justiniano Pinto to replace Espinoza until the outcome of a Constitutional Court challenge launched by the government against the vote to oust him.

Congress voted on Tuesday to remove Espinoza. Espinoza said he could not attend the hearing because he was due to visit the eastern city of Santa Cruz and then Brazil. The government initially resisted firing him, saying Congress had not secured enough votes to force him out, but Paz later bowed to parliamentary pressure.

The dismissal comes as Bolivia faces what AFP described as its worst economic turbulence in four decades. Paz, elected last year, is nine months into his administration and under pressure to address a fuel and currency crisis.

Paz’s decision to scrap decades-old fuel subsidies caused prices to double, AFP reported, triggering widespread anger. Demonstrations over worsening living conditions escalated into roadblocks that cut off major cities and calls for his resignation. Paz declared a state of emergency in June to quell the unrest.

To address the crisis, Paz has turned to international lenders, including the International Monetary Fund, which has consented to a $1.9 billion bailout. Espinoza was central to those negotiations.