Bolivia reaches staff-level $1.9bn IMF bailout deal

Bolivia and the International Monetary Fund have reached a staff-level agreement on a new $1.9 billion bailout as the country faces a severe economic crisis.

The IMF said the three-year programme still depends on Bolivia carrying out certain prior actions and on approval by the fund's board.

IMF official Joana Pereira said the programme was expected to help draw additional financing from the World Bank, the Inter-American Development Bank and other development partners, contributing to a wider package of more than $5 billion over the programme period.

Bolivian President Rodrigo Paz declared a state of emergency on June 20 after nearly two months of opposition road blockades over his handling of the crisis. The blockades, which affected supplies of food, medicine and fuel to La Paz and other cities, have since been removed by security forces.

Bolivia has faced double-digit inflation, a contracting economy and a rapidly devaluing currency. The currency's official value has fallen by more than 60 percent against the US dollar since Bolivia lifted a 15-year peg last month.

The IMF said the new programme would focus on restoring fiscal sustainability, strengthening social safety nets, modernising the exchange-rate regime, building resilience in the financial sector and improving competitiveness and governance.