Bloomberg says large approval of the gold law sent Bolivian bonds soaring

Although the approval in the first phase of the gold law was controversial, it did not go unnoticed by the international markets that registered an increase in the percentages of the bonds that placed the Bolivian State.

“Bolivia’s bonds skyrocketed this Friday after a bill that would allow the Central Bank to sell its gold reserves should it overcome a major hurdle in Congress. The country’s dollar bonds maturing in 2028 rose for the sixth day in a row, rising 6.2 cents to 60.4 cents on the dollarthe highest percentage advance since they were issued in 2017, ”says the publication of the specialized magazine Bloomberg.

This Friday, the divided bench of the ruling party achieved 54 votes of the 60 needed to pass the gold bill at his station in largebut the president of the Chamber of Deputies, Jerges Mercado, approved the document and on Saturday they will begin their treatment in detail of its 12 articles.

The publication, like the opponents of the norm, considers that This project will allow gold to be monetized that the Central Bank of Bolivia (BCB) has in its possession. Articles 1 and 9 of the bill 219 (gold law) clearly empower the issuing entity to monetize international reserves.

If the bill passes, could alleviate dollar shortage that has affected the economy in recent months and alarmed investors”, the publication specifies in reference to the possibility that is opening up for this sale.

The Government has encrypted hopes in the approval of this law, although there is still a long way to go, since Saturday should start consideration in detailthat is, article by article, and then it must be sent to the Chamber of Senators, where it must go through the same process, approval in large measure and then in detail.

The difficulty for the Executive stems from the open division between parliamentarians of his bench, some that answer to the Government, called renovators or ‘archists’, and the other block is loyal to Evo Morales, known as radicals or ‘evistas’.

At the moment there is a discussion regarding the legality of the approval of the standard in his big station, because the renovators or archists needed 60 votes, as established by the debate regulations of the Chamber of Deputies; but the majority of renovators or archists applied a simple arithmetic rule to declare the controversial project approved.