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Bolivia Congress Forces Economy Minister Out in Blow to President Paz

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Bolivia Congress Forces Economy Minister Out in Blow to President Paz
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Bolivia’s Congress on Tuesday voted to censure Economy Minister Jose Gabriel Espinoza, forcing his removal and delivering a setback to President Rodrigo Paz as his government seeks support for a sweeping economic reform programme.

Lawmakers approved the motion by majority vote after Espinoza failed to appear before Congress to answer questions about his management of the economy, monetary policy and macroeconomic planning.

Espinoza said he was unable to attend because he had travelled to Santa Cruz to address diesel supply problems before continuing to Brazil.

The censure comes at a critical point for Paz’s administration, which is seeking congressional approval for economic reforms and a financing programme negotiated with the International Monetary Fund in July. The programme still requires approval from Bolivia’s Congress and the IMF’s executive board.

The proposed IMF support is considered important to efforts to stabilise Bolivia’s economy and address persistent shortages of fuel and foreign currency.

Espinoza had served in Paz’s government since it took office in November and emerged as one of the key figures shaping its economic policies. He also played a prominent role in negotiations with international lenders.

The minister has faced additional scrutiny in recent weeks over the alleged purchase of an Audi vehicle at a price significantly below its reported market value. Espinoza attributed the discrepancy to a paperwork error.

His removal could complicate the government’s efforts to advance its economic agenda at a time when Bolivia is already grappling with fuel shortages, foreign exchange pressures and the need for external financing.

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