How Bolivia's Plans to Tap Mineral Riches Are Being Tested by Mass Unrest

Summary

Bolivia's new president Rodrigo Paz aims to attract foreign investment and reform the economy, but faces violent protests over fuel subsidies and political unrest. Frontier market investor Hans Humes holds Bolivian sovereign bonds, viewing the risk-reward as attractive despite the volatility.

• President Rodrigo Paz won election on a reform mandate after two decades of socialist rule.
• He wants to open Bolivia to foreign investment and develop huge lithium reserves.
• Protests erupted after Paz cut fuel subsidies, causing shortages and political pressure.
• Bolivia is negotiating a $3 billion IMF package to stabilize the economy.
• Investor Hans Humes owns Bolivian bonds and cites a positive macro story but warns of execution risks.
• Bolivia held its first dollar-denominated bond sale in nearly five years.
• The country's lithium state plant operates at only 15% capacity.
• Previous Chinese and Russian mining contracts remain unratified by Congress.