Bolivia receives $250m infrastructure and energy loan from South Korea

Bolivia receives $250m infrastructure and energy loan from South Korea Laguna Colorada, Bolivia (source: flickr/ rewbs.soal, creative commons)
Francisco Rojas 30 Mar 2015

Bolivia is currently asking several nations for loans and funds in order to develop energy and infrastructure projects at home.

A Mexican news source has recently announced that Bolivia and South Korea have signed a framework agreement credit line of $ 250 million to finance the construction of roads and infrastructure in the South American country, an official said today.

Speaking from South Korea on a local radio station in Bolivia, Red Patria Nueva, the Minister for Development Planning of Bolivia, Rene Orellana, said on Friday the loan will have an interest rate of 0.1 percent to 20 year term.

Orellana is currently in China to attend a meeting of governors of the Inter-American Development Bank (IDB).

The Bolivian official felt that with this agreement, new and easier ways to access loans and funding from other donor agencies such as the European Bank and the French Development Agency have been opened.

He explained that he met with representatives of the European Bank, “which has a capital of more than two billion euros (about two thousand 178 million dollars) to support sustainable development”.

He explained that in the case of the French Development Agency, the funds would go to renewable energy issues.

“We are also managing investments with a Japanese Bank for a geothermal for 50 million dollars and another further stage of 50 million more,” said the minister.

Source: Diario Rotativo