Bolivia's Ministry of Economy and Public Finance announced the creation of three new productive finance vehicles: the Export Support Credit Fund (Focax), the Sugarcane Sector Financing Fund (Focaña) and the Startup venture capital fund. The ministry framed the measures as support for national production, exports and innovative entrepreneurship, and said the additions bring the total number of government-established funds to 11. Each new fund will be capitalised with USD 6.03 million, financed from 5.554% of Multiple Banks’ and SME Banks’ 2024 net profits, which forms part of the 6% profit allocation required for banks’ “social function” under Law No. 393 and Supreme Decree No. 5306. The ministry reported 2024 bank profits of USD 380.22 million, implying USD 22.81 million under the 6% allocation, with 0.446% (USD 1.45 million) directed to strengthen the Trade Guild Sector Guarantee Fund (Fogagre), which has expanded to provide loans of up to BOB 10,000 through the Credigremial product. Under Ministerial Resolution No. 036 of 13 February 2025, Focax will finance working capital and investment for micro and SME exporters at interest rates of 10% for microenterprises and 6% for small and medium-sized enterprises, with tenors of 36 months for working capital and up to 120 months for investment, and will be administered by Banco Unión S.A. Focaña will provide similar working capital and investment loans to micro and SME sugarcane producers at the same interest rates and similar tenors, administered by Banco de Desarrollo Productivo S.A.M., with eligibility conditions including repayment capacity and a restriction that proceeds cannot be used to refinance existing debts. The Startup fund, also managed by Banco de Desarrollo Productivo S.A.M., will provide risk capital to innovative ventures through accelerators, with each accelerator permitted to manage up to USD 900,000. Supervision and compliance oversight will sit with the Financial System Supervision Authority (ASFI), and the ministry will sign administration contracts with the relevant financial institutions.
Ministry of Finance (Bolivia) 2025-02-25
Bolivia's Ministry of Economy and Public Finance creates Focax, Focaña and Startup funds with USD 6.03 million each from banks’ 2024 profit allocation
Bolivia's Ministry of Economy and Public Finance announced three new finance vehicles: the Export Support Credit Fund (Focax), the Sugarcane Sector Financing Fund (Focaña), and a Startup venture capital fund, each capitalized with USD 6.03 million. These funds, part of a 6% profit allocation from banks under Law No. 393, aim to support national production, exports, and entrepreneurship. Supervision will be by the Financial System Supervision Authority, with administration by Banco Unión S.A. and Banco de Desarrollo Productivo S.A.M.