Bolivia’s Paz appoints new economy minister amid bailout talks

Bolivian President Rodrigo Paz has appointed a new economy minister to tackle the nation's financial turmoil amid bailout discussions. Christian Morales will replace Jose Gabriel Espinoza, who was dismissed from his position last week after Congress voted to remove him for not appearing before lawmakers to answer questions about his economic management.

Morales was instrumental in leading negotiations with multilateral lenders on a multi-billion-dollar rescue package and was tasked with securing between US$7 and US$10 billion in aid from the International Monetary Fund, Inter-American Development Bank, and the Development Bank of Latin America and the Caribbean. Paz's administration aims to liberalize Bolivia's economy following two decades of anti-capitalist socialist governments, which he believes have left the country in disarray.

Recent steps have included eliminating fuel subsidies, allowing the boliviano currency to float freely against the US dollar, and opening the mining and energy sectors to private investors. While inflation has decreased from 21% to 5% year-on-year between November 2025 and July, fuel remains in short supply, and the economy continues to struggle.

The unrest over living conditions erupted earlier this year, prompting protests that culminated in roadblocks disrupting major city supplies. President Paz quelled the unrest in June by declaring a state of emergency.