Latest news with #Inter-AmericanDevelopmentBank
Int'l Business Times
3 days ago
- Business
- Int'l Business Times
Bolivia Risks Debt Default Without New Funding: President To AFP
Bolivia, battling an economic crisis that has plunged it into social unrest, risks defaulting on its loan payments if it does not obtain new foreign financing, President Luis Arce told AFP on Wednesday. "We are trying not to default. We have every intention of paying our debt, but if we don't have the resources?" the embattled leader said in an interview in his office in La Paz. Bolivia's external debt stands at $13.3 billion. Its main creditors are the Inter-American Development Bank, the Development Bank of Latin America and the Caribbean (CAF), the World Bank, and China. Arce has been unable to convince parliament to allow him to seek new loans to the tune of $1.8 billion from multilateral agencies. The country needs $2.6 billion by December for fuel imports and external debt payments. "We are making the worst deal as a country. Because when one has external debt, you pay the principal and interest to the creditor, and that outflow of dollars is compensated by the inflow of new disbursements from new debts, which is not happening," said the president. Bolivia's debt represents over 37 percent of its gross national income, according to the World Bank. The last time the country defaulted was in 1984. Arce has dismissed calls to stand down over an economic crisis marked by a dire shortage of foreign currency, fuel and other basics. But he has said he will not seek reelection in August, with his approval rating at 9.0 percent -- one of the lowest in South America, according to survey body Latinobarometro. Bolivia, home to 12 million people and an Indigenous majority, is one of the poorest countries on the continent despite sitting on vast natural resources such as gas and lithium. In 2023, state oil company YPFB said Bolivia was running out of natural gas -- a crucial export product -- due to a lack of investment in new exploration. A dramatic drop in gas exports led foreign currency reserves to plummet, making Bolivia unable to import sufficient fuel -- which it subsidizes heavily for the domestic market -- for its needs. Inflation in May was 18.4 percent year-over-year, the highest in nearly two decades, and the local currency, the Boliviano, continues to lose value. Bolivia's woes have been compounded by a power struggle between Arce and ally-turned-foe ex-president Evo Morales, who has repeatedly brought his supporters onto the streets in the past year to demand the incumbent's resignation. Arce, in office since 2020, has accused Morales -- who seeks a fourth term as president despite being legally barred -- of using the country's economic crisis for political gain. At least four police officers and one protester were killed in clashes last week. Arce told AFP Morales took aim at his government "with all his artillery" just as it was "beginning to take off." Analysts believe Bolivia is in for a political shift after nearly two decades of leftist governance, with the right now ahead in polls.
France 24
3 days ago
- Business
- France 24
Bolivia risks debt default without new funding: president to AFP
"We are trying not to default. We have every intention of paying our debt, but if we don't have the resources?" the embattled leader said in an interview in his office in La Paz. Bolivia's external debt stands at $13.3 billion. Its main creditors are the Inter-American Development Bank, the Development Bank of Latin America and the Caribbean (CAF), the World Bank, and China. Arce has been unable to convince parliament to allow him to seek new loans to the tune of $1.8 billion from multilateral agencies. The country needs $2.6 billion by December for fuel imports and external debt payments. "We are making the worst deal as a country. Because when one has external debt, you pay the principal and interest to the creditor, and that outflow of dollars is compensated by the inflow of new disbursements from new debts, which is not happening," said the president. Bolivia's debt represents over 37 percent of its gross national income, according to the World Bank. The last time the country defaulted was in 1984. Arce has dismissed calls to stand down over an economic crisis marked by a dire shortage of foreign currency, fuel and other basics. But he has said he will not seek reelection in August, with his approval rating at 9.0 percent -- one of the lowest in South America, according to survey body Latinobarometro. 'All his artillery' Bolivia, home to 12 million people and an Indigenous majority, is one of the poorest countries on the continent despite sitting on vast natural resources such as gas and lithium. In 2023, state oil company YPFB said Bolivia was running out of natural gas -- a crucial export product -- due to a lack of investment in new exploration. A dramatic drop in gas exports led foreign currency reserves to plummet, making Bolivia unable to import sufficient fuel -- which it subsidizes heavily for the domestic market -- for its needs. Inflation in May was 18.4 percent year-over-year, the highest in nearly two decades, and the local currency, the Boliviano, continues to lose value. Bolivia's woes have been compounded by a power struggle between Arce and ally-turned-foe ex-president Evo Morales, who has repeatedly brought his supporters onto the streets in the past year to demand the incumbent's resignation. Arce, in office since 2020, has accused Morales -- who seeks a fourth term as president despite being legally barred -- of using the country's economic crisis for political gain. At least four police officers and one protester were killed in clashes last week. Arce told AFP Morales took aim at his government "with all his artillery" just as it was "beginning to take off." Analysts believe Bolivia is in for a political shift after nearly two decades of leftist governance, with the right now ahead in polls.
Miami Herald
04-06-2025
- Business
- Miami Herald
School dropout rate reaches 27% across Latin America
June 4 (UPI) -- Latin America is facing an escalating education crisis as school dropout rates continue to climb, affecting not only the region's poorest countries but also those with historically strong public education systems, such as Chile, Costa Rica and Uruguay. In Argentina, despite its educational potential, nearly 40% of the population -- about 17.9 million people -- lives in poverty, a factor that directly impacts school attendance and completion. Statistics show that roughly 160 million people in Latin America and the Caribbean are of school age -- nearly a quarter of the region's total population. About half of them do not complete their education, and many are considering leaving their home countries for the United States, Spain or other developed nations in search of better opportunities. The Economic Commission for Latin America and the Caribbean and other international organizations have warned that the region's dropout crisis poses a serious threat to its development. A report by the Inter-American Development Bank found that 27% of students drop out before completing their education. UNESCO estimates that around 23 million children and teenagers in the region are not enrolled in school. Countries with the lowest dropout rates include Chile (7%), Peru (10%) and Bolivia (16%). The highest rates are in Guatemala (57%), Honduras (53%) and Uruguay (37%). Venezuela's rate is estimated at 27%, while Paraguay and Ecuador report dropout rates of 32% and 28%, respectively. In Mexico, more than 4 million children and teenagers are not in school, and another 600,000 are at risk of dropping out, according to a UNICEF report. The problem becomes more pronounced with age: three in 10 teens aged 15 to 17 are no longer attending school. ECLAC attributes part of the crisis to extended school closures during the COVID-19 pandemic, which lasted more than 70 weeks on average. These interruptions severely disrupted schooling and widened existing inequalities, particularly at the secondary level. Experts agree that school dropout is a multifaceted issue. While the pandemic worsened the situation, studies show the trend predates COVID-19 and is rooted in deep structural problems. Contributing factors include poverty, single-parent or broken families and low parental education levels, all of which push many students to leave school to work or care for family members. Teenage pregnancy is another key factor. Other factors are student disengagement, lack of motivation, disruptive classroom environments and the inability of youth to see education as a path to a better future. Drug use and recruitment by drug trafficking gangs further undermine student retention. Although less prevalent today, the traditional lack of value placed on technical education in the region has also contributed to the problem. Stronger connections between vocational training and the job market could provide a path forward for many young people. Early school dropout significantly undermines economic development across Latin America. Young people who leave school early are less likely to find formal, stable or well-paying jobs, leading to a less skilled workforce and lower productivity. This, in turn, slows national economic growth, reduces competitiveness and hampers innovation. Copyright 2025 UPI News Corporation. All Rights Reserved.
Yahoo
04-06-2025
- Business
- Yahoo
School dropout rate reaches 27% across Latin America
June 4 (UPI) -- Latin America is facing an escalating education crisis as school dropout rates continue to climb, affecting not only the region's poorest countries but also those with historically strong public education systems, such as Chile, Costa Rica and Uruguay. In Argentina, despite its educational potential, nearly 40% of the population -- about 17.9 million people -- lives in poverty, a factor that directly impacts school attendance and completion. Statistics show that roughly 160 million people in Latin America and the Caribbean are of school age -- nearly a quarter of the region's total population. About half of them do not complete their education, and many are considering leaving their home countries for the United States, Spain or other developed nations in search of better opportunities. The Economic Commission for Latin America and the Caribbean and other international organizations have warned that the region's dropout crisis poses a serious threat to its development. A report by the Inter-American Development Bank found that 27% of students drop out before completing their education. UNESCO estimates that around 23 million children and teenagers in the region are not enrolled in school. Countries with the lowest dropout rates include Chile (7%), Peru (10%) and Bolivia (16%). The highest rates are in Guatemala (57%), Honduras (53%) and Uruguay (37%). Venezuela's rate is estimated at 27%, while Paraguay and Ecuador report dropout rates of 32% and 28%, respectively. In Mexico, more than 4 million children and teenagers are not in school, and another 600,000 are at risk of dropping out, according to a UNICEF report. The problem becomes more pronounced with age: three in 10 teens aged 15 to 17 are no longer attending school. ECLAC attributes part of the crisis to extended school closures during the COVID-19 pandemic, which lasted more than 70 weeks on average. These interruptions severely disrupted schooling and widened existing inequalities, particularly at the secondary level. Experts agree that school dropout is a multifaceted issue. While the pandemic worsened the situation, studies show the trend predates COVID-19 and is rooted in deep structural problems. Contributing factors include poverty, single-parent or broken families and low parental education levels, all of which push many students to leave school to work or care for family members. Teenage pregnancy is another key factor. Other factors are student disengagement, lack of motivation, disruptive classroom environments and the inability of youth to see education as a path to a better future. Drug use and recruitment by drug trafficking gangs further undermine student retention. Although less prevalent today, the traditional lack of value placed on technical education in the region has also contributed to the problem. Stronger connections between vocational training and the job market could provide a path forward for many young people. Early school dropout significantly undermines economic development across Latin America. Young people who leave school early are less likely to find formal, stable or well-paying jobs, leading to a less skilled workforce and lower productivity. This, in turn, slows national economic growth, reduces competitiveness and hampers innovation.
UPI
04-06-2025
- Business
- UPI
School dropout rate reaches 27% across Latin America
June 4 (UPI) -- Latin America is facing an escalating education crisis as school dropout rates continue to climb, affecting not only the region's poorest countries but also those with historically strong public education systems, such as Chile, Costa Rica and Uruguay. In Argentina, despite its educational potential, nearly 40% of the population -- about 17.9 million people -- lives in poverty, a factor that directly impacts school attendance and completion. Statistics show that roughly 160 million people in Latin America and the Caribbean are of school age -- nearly a quarter of the region's total population. About half of them do not complete their education, and many are considering leaving their home countries for the United States, Spain or other developed nations in search of better opportunities. The Economic Commission for Latin America and the Caribbean and other international organizations have warned that the region's dropout crisis poses a serious threat to its development. A report by the Inter-American Development Bank found that 27% of students drop out before completing their education. UNESCO estimates that around 23 million children and teenagers in the region are not enrolled in school. Countries with the lowest dropout rates include Chile (7%), Peru (10%) and Bolivia (16%). The highest rates are in Guatemala (57%), Honduras (53%) and Uruguay (37%). Venezuela's rate is estimated at 27%, while Paraguay and Ecuador report dropout rates of 32% and 28%, respectively. In Mexico, more than 4 million children and teenagers are not in school, and another 600,000 are at risk of dropping out, according to a UNICEF report. The problem becomes more pronounced with age: three in 10 teens aged 15 to 17 are no longer attending school. ECLAC attributes part of the crisis to extended school closures during the COVID-19 pandemic, which lasted more than 70 weeks on average. These interruptions severely disrupted schooling and widened existing inequalities, particularly at the secondary level. Experts agree that school dropout is a multifaceted issue. While the pandemic worsened the situation, studies show the trend predates COVID-19 and is rooted in deep structural problems. Contributing factors include poverty, single-parent or broken families and low parental education levels, all of which push many students to leave school to work or care for family members. Teenage pregnancy is another key factor. Other factors are student disengagement, lack of motivation, disruptive classroom environments and the inability of youth to see education as a path to a better future. Drug use and recruitment by drug trafficking gangs further undermine student retention. Although less prevalent today, the traditional lack of value placed on technical education in the region has also contributed to the problem. Stronger connections between vocational training and the job market could provide a path forward for many young people. Early school dropout significantly undermines economic development across Latin America. Young people who leave school early are less likely to find formal, stable or well-paying jobs, leading to a less skilled workforce and lower productivity. This, in turn, slows national economic growth, reduces competitiveness and hampers innovation.
