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Economy & Business - January 2012 (ISSN 1741-7430)

BOLIVIA: Government tries direct borrowing

To the horror of at least one former central bank president, the government has launched a scheme to allow Bolivians to buy government debt over the counter, rather than via a financial intermediary. Armando Méndez Morales, a former president of the central bank (BCB), said that the government was simply issuing debt to finance its fiscal deficit rather than to manage monetary policy and control inflation.

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